Northern District of Georgia
Press releases recorded for this federal judicial district.
ALPHABAY Spokesperson Ronald L. Wheeler III A/K/A “Trappy” arraigned in federal courtRead the Press Release
ATLANTA - Ronald L. Wheeler, III, a/k/a Trappy, has been arraigned on federal charges of conspiracy to commit access device fraud. During the hearing, Wheeler waived indictment and opted to proceed by criminal information.
“This defendant was the mouthpiece for AlphaBay on the internet, encouraging others to access the Dark Web and purchase illegal drugs and contraband,” said U.S. Attorney Byung J. “BJay” Pak. “Like other defendants, Wheeler eventually learned that the Dark Web is not impenetrable; your actions will catch up to you, just like they did in this case.”
“Cyber criminals, such as Ronald L. Wheeler, present an omnipresent and increasingly critical threat to our community's safety. By acting as a spokesperson for the criminal element on AlphaBay, he served to further the agendas of those who chose to defy our laws and victimize our communities. He operated with an attitude of impunity, until now,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.
“People think the Dark Web allows them to be incognito, conduct criminal activity and profit undetected,” said James E. Dorsey, Acting Special Agent in Charge, IRS Criminal Investigation. “We will continue to work with our law enforcement partners and the United States Attorney’s Office to shine light into the Dark Web and dismantle these corrupt criminal enterprises one at a time.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Ronald L. Wheeler III a/k/a Trappy conspired with Alexandre Cazes a/k/a Alpha02 a/k/a Admin, and others to commit access device fraud through The Onion Routing (“TOR”) Dark Web marketplace AlphaBay.
AlphaBay was an international criminal marketplace that enabled users to purchase and sell stolen and fraudulently obtained access devices, illegal drugs, firearms, hacking tools, and other illicit goods and services. Sales listings on the website were organized into categories, including “Fraud,” “Drugs & Chemicals,” “Counterfeit Items,” “Weapons,” and “Carded Items.” Shortly before AlphaBay was shut down by law enforcement, the website contained thousands of sales listings for illegal products, including approximately 4,488 sales listings for stolen personally identifying information; 28,800 sales listings for stolen online account information; 6,008 sales listings for stolen credit card information; 3,586 sales listings for computer hacking tools, such as botnets and exploit kits; and 257,533 sales listings for illegal drugs, including cocaine, heroin, and a variety of opioids. The sales of stolen personally identifying information, online account information, and credit card information all provided fertile grounds for access device fraud to flourish on the Dark Web.
The financial transactions conducted on AlphaBay occurred in virtual cryptocurrencies. Aside from product listings, AlphaBay provided message board forums where users could securely discuss their criminal activities and receive support from AlphaBay staffers.
On or about May 25, 2015, Wheeler began working as a public relations specialist for AlphaBay. Wheeler’s duties included moderating the AlphaBay subreddit on the internet website reddit.com; moderating the AlphaBay message board forums; mediating sales disputes among AlphaBay users; promoting AlphaBay on the internet; and providing non-technical assistance to AlphaBay users. In return for his work in the conspiracy, Wheeler received a salary in Bitcoin. Throughout his participation in the conspiracy, Wheeler advised the public on how to access AlphaBay and encouraged the public to use AlphaBay. Wheeler’s work with AlphaBay continued until early July 2017, when the FBI and its international law enforcement partners shut down AlphaBay and the AlphaBay owner, Cazes, was arrested in Thailand.
Ronald L. Wheeler, III, a/k/a Trappy, 24, of Streamwood, Illinois, was arraigned before U.S. Magistrate Judge Janet F. King. Members of the public are reminded that the information only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation.
Assistant U.S. Attorney Samir Kaushal is prosecuting the case. Substantial assistance was provided by the U.S. Attorney’s Office for the Northern District of Illinois.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Cox Communications Vice President pleads guilty to conspiring to embezzle millions of dollarsRead the Press Release
ATLANTA – Janet West, a former Cox Communications vice president, has pleaded guilty to her part in an embezzlement scheme that cost the company millions of dollars.
“West defrauded a company that trusted her judgment as a vice president,” said U.S. Attorney Byung J. “BJay” Pak. “The temptation to steal via a credit card may be appealing. This defendant wishes she had thought twice about the potential outcome.”
“This case should be an example that no matter your position, you cannot profit illegally or take advantage of your status in the company you were entrusted to work for,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “The FBI is committed to making cases like this a strong deterrent to greed’s temptation.”
According to U.S. Attorney Pak, the charges and other information presented in court: West was Cox Communications’ Vice President in charge of Nationwide Field Marketing for the company’s plan to bring Gigabit speed connections to markets throughout the United States. Beginning in 2011, West began directing her assistant to make payments on the assistant’s corporate credit card to a third party company for supposed marketing services. In reality, a significant portion of these services never actually occurred and the majority of these funds were actually secretly being transferred back to the defendant. West repeatedly signed false conflict of interest certifications with Cox Communications that failed to disclose the payments she was making to herself.
West caused Cox to make payments totaling $2.4 million to this third party, most of which was then sent back to her. The defendant then used the embezzled funds for her own personal benefit, including making payments on two houses she owned in Arizona. Pursuant to the plea agreement in this case, West agreed to forfeit her interests in both of these houses.
Sentencing for Janet West, 47, of Paradise Valley, Arizona, is scheduled for March 12, 2018, at 10:30 a.m., before U.S. District Judge Amy Totenberg.
This case is being investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Thomas J. Krepp and Kelly K. Connors are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Man who “sextorted” 12-year-old girl receives 10-year prison sentenceRead the Press Release
ATLANTA - Gerardo Perez Uribe has been sentenced to 10 years in prison for coercing a minor girl in North Carolina to produce child pornography of herself and send it to him over the Internet.
“‘Sextortion’ is a growing problem on social media sites,” said U. S. Attorney Byung J. “BJay” Pak. “Our office along with our federal, state, and local law enforcement partners encourage parents to help us target those who seek to prey on children by watching what your children are doing on the Internet, and who they are communicating with. Most children do not understand the dangers that may lurk on the Internet, and can easily fall victim to predators like Uribe.”
“Social media sites are a convenient way for young children to network with their friends and family, but unfortunately, they also make children easy targets for online predators like Uribe,” said David J. LeValley, Special Agent in Charge of the Atlanta Field Office. “Our Crimes Against Children unit is dedicated to weeding out sexual predators who troll the internet for unsuspecting children. They can’t do it alone and that’s why it is so important for parents to educate their children and monitor their activities on social media sites.”
According to U.S. Attorney Pak, the charges and other information presented in court: In the summer of 2014, Perez Uribe met a 12-year-old girl on Facebook. He first told her that he was 13-years-old but later claimed to be 25-years-old. He asked the girl to send him nude images of herself, and she did. After receiving the images in August 2014, Perez Uribe took over the girl’s Facebook account, changed her password, and locked her out of the account. He then threatened to post the girl’s nude images on her Facebook page if she refused to send him more nude photos of herself. The victim believed Perez Uribe’s threat and sent him four photographs of herself that met the federal definition of child pornography. The girl’s parents discovered the crime and reported the incident to the Cabarrus County (North Carolina) Sheriff’s Office. The Sheriff’s Office investigated the case and then referred the matter to the Federal Bureau of Investigation once Perez Uribe was located in Georgia.
Gerardo Perez Uribe, 32, of Rex, Georgia, was sentenced to 10 years in prison to be followed by 10 years of supervised release. He pleaded guilty on August 24, 2017. He was born in Mexico but was living in the United States as a permanent resident. He will be deported to Mexico after he completes his prison sentence.
This case was investigated by the Federal Bureau of Investigation and Cabarrus County (North Carolina) Sheriff’s Office.
Assistant U.S. Attorneys Paul R. Jones and Mary Webb prosecuted the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Man pleads guilty to obstructing justice in City of Atlanta corruption investigationRead the Press Release
ATLANTA - Shandarrick Barnes has pleaded guilty to obstructing justice in the federal corruption investigation involving City of Atlanta government. The defendant threw a concrete block through the window of E.R. Mitchell’s home, and placed dead rodents on his porch and elsewhere hoping to thwart his cooperation with federal law enforcement.
“Barnes threw the concrete block through Mitchell’s dining room window to get him to ‘shut up,’” said U. S. Attorney Byung J. “BJay” Pak. “Instead, that violent act made Mitchell even more resolute in his cooperation with federal law enforcement. Barnes now faces a significant prison sentence because he decided to obstruct a federal investigation.”
“Attempts to subvert justice, whether through intimidation of witnesses or by any other means, will not be tolerated. The FBI will expend any resources necessary to ensure that those who seek to obstruct criminal investigations are held accountable for their actions. This plea by Shandarrick Barnes is evidence of the FBI’s commitment to protect those willing to cooperate with law enforcement’s efforts to improve their communities,”
“Individuals who obstruct justice will be held accountable for their actions. Intimidation of witnesses is never acceptable,” said James Dorsey, Acting Special Agent in Charge, IRS Criminal Investigation. “This investigation was complex and multifaceted, and it underscores the reason we are committed to working with our law enforcement partners to dismantle any and all public corruption schemes.”
According to U.S. Attorney Pak, the charges, and other information presented in court: In late July 2015, special agents with IRS and the FBI approached E.R. Mitchell for an interview relating to an ongoing investigation into corruption at the City of Atlanta. During the meeting, agents discussed corruption allegations as well as potential tax improprieties. Shortly after the IRS and FBI agents approached and interviewed him, Mitchell informed others that federal law enforcement had spoken with him and was asking questions.
Mitchell was interviewed on September 2, 2015, by the U.S. Attorney’s Office and FBI and IRS agents and confessed to regularly paying “up-front money” for City of Atlanta contracts. On September 8, 2015, Mitchell returned to the office and completed a second debriefing with prosecutors and agents.
On September 11, 2015 at approximately 5:30 a.m., Shandarrick Barnes threw a concrete block with the words “ER, keep your mouth shut!” written on the side, through a plate glass window in Mitchell’s home. When Mitchell emerged from the house to see who had thrown the block, he saw that dead rats had been placed on his porch, car and in his mailbox. The police and FBI were summoned to the scene and law enforcement obtained security footage from the subdivision. The video revealed a car that appeared to match Barnes’ vehicle left the area minutes after the block was thrown through the front window. Further investigation by agents suggested that Barnes was involved.
On July 13 and August 17, 2016, Barnes was interviewed by the FBI and IRS. During the interviews, he admitted he threw the concrete block through Mitchell’s window. Barnes specifically acknowledged that he was aware of the IRS tax investigation into Mitchell and others and that agents had asked about Mitchell’s taxes as well as payments Mitchell made to businesses associated with Barnes’ employer. He was well aware that Mitchell was actively cooperating with agents. He said he was livid and his decision to throw the brick through Mitchell’s window was motived by his desire to hinder Mitchell’s communication with agents concerning possible tax violations. He said he felt that Mitchell’s communications to federal law enforcement would negatively affect his employer’s businesses. Barnes was concerned that the communication with agents was detrimental to obtaining other business that he and others were actively seeking at that time.
Sentencing for Shandarrick Barnes, 41, of Atlanta, Georgia, is scheduled for February 7, 2018.
This case is being investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorneys Kurt R. Erskine and Jeffrey Davis are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Armed career criminal in possession of a firearm and ammunition sentenced to prisonRead the Press Release
ATLANTA - Stanley Lamar Bailey has been sentenced to 21 years and 10 months in federal prison for possessing ammunition and a firearm on November 7, 2015, after leading police on a dangerous high-speed chase.
“Bailey placed innocent people in danger by leading police on a high-speed chase, eventually crashing his vehicle and fleeing the scene, leaving behind drugs, a thirty-round extended magazine, and a semi-automatic firearm,” said U.S. Attorney Byung J. “BJay” Pak. “My office brought this case as part of the overall Department of Justice enforcement priorities relating to violent crimes. Bailey was a serial offender who has been removed from the community, along with any danger that could result from his actions.”
“Bailey’s criminal history shows a complete and utter disregard for the lives of others as well as for their personal pursuits,” said ATF Assistant Special Agent in Charge John Schmidt. “This sentence is a direct message to criminals that we will target you and we will ensure that you are prosecuted and removed from our streets.”
According to U.S. Attorney Pak, the charges and other information presented in court: On November 7, 2015, a DeKalb County Police Officer was on routine patrol when he saw a car drive past him. The officer ran a check on the tags of the vehicle. He learned that its registration was suspended and it had no valid insurance. As a result, the officer attempted to conduct a traffic stop. However, when he initiated the stop, the driver, who was later determined to be Bailey, initially slowed down as if to pull over, then sped away.
Bailey briefly traveled into oncoming traffic, wrecked the car by hitting another vehicle, and then ran away on foot. In the abandoned vehicle, police found Bailey’s wallet, which contained, among other things, Bailey’s Social Security card and Georgia identification card. The photograph on the identification card matched the person who was driving the car and had fled the scene.
In the vehicle, the officer also found marijuana, drug paraphernalia, a Glock semi-automatic pistol, a thirty-round extended magazine, and twenty-eight rounds of 9mm ammunition. Prior to this incident, Bailey had been convicted of more than seven felonies, including possession with intent to distribute cocaine, possession of a firearm by a convicted felon, burglary, and theft by receiving stolen property. Subsequent to the November 2015 incident, but before his conviction in this case, Bailey was convicted of aggravated assault and battery/family violence.
Stanley Lamar Bailey, 50, of Decatur, Georgia, has been sentenced to 21 years, 10 months in prison to be followed by three years of supervised release. Bailey was found guilty by a jury on July 11, 2017.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the DeKalb County Police Department investigated this case.
Assistant U.S. Attorney Suzette A. Smikle prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
FDA supervisor and local businessman charged in bribery schemeRead the Press Release
ATLANTA - Elvis Gordon, a U.S. Food and Drug Administration (“FDA”) supervisor, and small business owner Ivan Ponder have been arraigned on bribery and conspiracy charges for using Gordon’s influence to divert FDA contracts to a company owned by Ponder.
“Gordon and Ponder allegedly carried out a kickback scheme that lined both their pockets with taxpayer money for nearly six years,” said U. S. Attorney Byung J. “BJay” Pak. “Gordon is charged with violating the public’s trust by taking bribes in exchange for steering FDA business to Ponder.”
“Every federal employee has the responsibility to use the public’s funds wisely,” said Antoinette V. Henry, Special Agent in Charge, FDA Office of Criminal Investigations’ Office of Internal Affairs. “When FDA employees abuse that trust, we will act swiftly to investigate and ensure that those responsible are held accountable.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Elvis Gordon is the Senior Facilities Manager of the FDA field office in Atlanta, and in that role influences the selection of businesses that do various maintenance work at the FDA building in the Atlanta area.
From 2010 until 2016, Gordon allegedly used his position to direct work to P&E Management, a company owned by Ivan Ponder. Ponder, in turn, gave Gordon a debit card tied to P&E’s bank account, which Gordon used for shopping sprees, vacations, and dining out. On one occasion, Gordon used the debit card to pay for FDA business trip expenses, for which Gordon later sought reimbursement from the FDA. P&E also purchased a Cadillac Escalade for Gordon and his wife.
Elvis Gordon, 51, of Marietta, Georgia, and Ivan Ponder, 38, of Hiram, Georgia, were arraigned before U.S. Magistrate Judge Catherine M. Salinas. The defendants were indicted by a federal grand jury on October 17, 2017.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the U.S. Food and Drug Administration Office of Internal Affairs.
Assistant U.S. Attorney Lynsey M. Barron is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Jury convicts former Cumming Police sergeant of accepting bribes and computer fraudRead the Press Release
ATLANTA – A federal jury in Atlanta convicted former Cumming Police Sergeant Nathan VanBuren of taking bribes in exchange for providing sensitive law enforcement information.
“VanBuren broke the very laws he swore to uphold and enforce,” said U.S. Attorney Byung J. “BJay” Pak. “Police officers are afforded respect, and are expected to model integrity and honesty. This former officer undermined the hard work of other officers who serve, as well as the community’s trust and respect for the police.”
“The FBI is charged with the unfortunate but necessary task of investigating police misconduct, to include corruption. That was the case with the allegations received involving then Cumming Police Sgt. VanBuren, which resulted in his federal indictment and today’s conviction via jury trial. The FBI continues to ask the public to do its part by reporting all allegations of public corruption, to include those involving law enforcement, to their nearest FBI field office for prompt action,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. States Attorney Pak, the charges, and other information presented in court: In July 2015, VanBuren, in his official capacity as a police officer, responded to a 911 call at a citizen’s home in Cumming, Georgia. The citizen was arrested. In July and August 2015, VanBuren and the citizen had additional communications. During those communications, VanBuren asked the citizen for a loan under the guise that his wages were being garnished and he had incurred financial debt due to his son’s medical and surgical expenses. In truth, VanBuren’s salary was not being garnished and his son was neither ill nor had surgery. The citizen felt threatened and reported VanBuren’s actions to the Forsyth County Sheriff’s Department and agreed to cooperate with law enforcement.
While cooperating with law enforcement, the citizen provided VanBuren $5000 in response to VanBuren’s repeated requests for money. During that meeting, the citizen asked whether VanBuren would search a sensitive police database to determine whether an individual was an undercover police officer. Ultimately, in exchange for $1000, VanBuren unlawfully accessed a law enforcement database and provided the results of that search to the citizen. VanBuren resigned before he was terminated by the Cumming Police Department.
A jury found Nathan VanBuren, 35, of Cumming, Georgia, guilty of honest services wire fraud and computer fraud. Sentencing for VanBuren has not yet been scheduled.
This case is jointly being investigated by the Federal Bureau of Investigation and the Georgia Bureau of Investigation. The Cumming Police Department and Forsyth County Sheriff’s Office assisted with the investigation.
Assistant U.S. Attorney Jeffrey Brown is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
U. S. Penitentiary Lieutenant arraigned on excessive force and obstruction of justice chargesRead the Press Release
ATLANTA – Lieutenant Gregory McLeod, a senior correctional officer at the U.S. Penitentiary in Atlanta, Georgia, has been arraigned following an investigation of an allegation that McLeod used excessive force against an inmate in 2016. McLeod was indicted by a federal grand jury on October 24, 2017, and has been charged with unnecessarily assaulting the inmate, writing two false official accounts about the encounter, and lying to federal investigators about his conduct.
“We recognize that detention officers have a difficult job as they maintain order and protect inmates in our nation’s prisons,” said U.S. Attorney Byung J. “BJay” Pak. “This officer, however, allegedly abused his power, committed a violent and unnecessary assault on an inmate, and then filed a false report to cover up the incident.”
“The FBI continues to play a vital role in ensuring that all credible allegations of civil rights violations involving law enforcement officers are appropriately investigated and prosecuted under one of the several criminal statutes that address civil rights abuses and other criminal conduct by law enforcement and corrections officers. That was certainly the case with U.S. Bureau of Prisons Lt. McLeod, wherein allegations of excessive force were received, resulting in a federal investigation, grand jury indictment, and today’s arraignment in federal court. The FBI would like to remind the public, however, that the vast majority of law enforcement officers and corrections officers provide admirable services while often under stressful and time constrained situationss,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Attorney Pak, the indictment, and other information presented in court: McLeod, who worked as a supervisor at the prison, allegedly strip-searched an inmate in his office in front of three other correctional officers. After the inmate complained that the strip-search was taking too long, McLeod repeatedly punched the inmate in his face, injuring him. Following the assault, McLeod wrote an incident report and a separate memorandum about the encounter in which he falsely claimed that the inmate swung a closed fist at McLeod and attempted to assault other officers before the officers could apply hand and leg restraints. The indictment charges that McLeod used excessive force and thereby violated the inmate’s constitutional rights. The indictment also accuses McLeod of intentionally impeding and obstructing the investigation of the incident by writing false reports and lying to two federal agents.
Gregory McLeod, 44, of East Point, Georgia, was arraigned on these charges during a hearing in federal court before U.S. Magistrate Judge Catherine M. Salinas.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the DOJ Office of Inspector General and the Federal Bureau of Investigation.
Assistant U.S. Attorney Brent Alan Gray and DOJ Civil Rights Division Trial Attorney Mary J. Hahn are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
Two pharmacists sentenced to 19 and 20 years in prison and ordered to pay $5 million in restitution to the State of Georgia to combat the opioid epidemicRead the Press Release
ATLANTA - Rosemary Ofume and Donatus Iriele have each been ordered to pay $2.5 million in community restitution. The community restitution funds are to be paid to the Georgia state agencies responsible for substance abuse treatment and victims assistance. The defendants, who are husband and wife, formerly owned the Medicine Center Pharmacy in Atlanta, Georgia. They were sentenced on July 20, 2017, to 19 and 20 years in prison, respectively, for illegally dispensing controlled narcotics to customers of the AMARC “pill mill” pain clinic.
“The defendants used their pharmacy to supply pills to patients of a known ‘pill mill’ and then laundered millions of dollars to conceal their crimes,” said U.S. Attorney Byung J. “BJay” Pak. “These pharmacists fed opiate addictions among so many as a means to sustain their lifestyles. Now, they will begin to serve lengthy prison sentences and pay back the state of Georgia to account for some of the harm they caused to the community. This money will go to help the individuals whose lives have been scarred by addiction.”
Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division said, “It is a sad commentary when trusted individuals in the medical community hide behind the veil of legitimacy to commit criminal acts. These pharmacists can no longer fill the opiate cravings of pill-seeking addicts with impunity. Owners and operators of pill mills spin a broad web of deception, reeling in casts of thousands who are addicted to pharmaceutical drugs. This investigation was a success because of the spirited level of law enforcement cooperation.”
“These convictions have removed a huge tumor from the cancer that illicit drug distribution has become during our lifetime. The hard work invested in this case by all parties, from the U.S. Attorney’s office, to the boots on the ground front-line drug agents, and everyone in-between, proves what dedication, persistence and cooperation can accomplish. It’s proof positive that just because you have a license to practice pharmacy, you aren’t entitled to put illicitly prescribed drugs on the street and contribute to the skyrocketing opioid addiction and overdose death rates. All health care professionals are put on notice to remember: you are to do no harm. And if you intentionally ignore this charge, you are going to be treated the same as a street-corner drug dealer in this war on opioid abuse,” said Dennis M. Troughton Sr., Director, Georgia Drugs & Narcotics Agency.
According to U.S. Attorney Pak, the charges and other information presented in court: In May 2009, agents of the DEA, working with agents for the IRS, began investigating the AMARC pain clinic, located on Lakewood Avenue in Atlanta and nearby Medicine Center Pharmacy, after receiving information that the clinic and pharmacy were illegitimately prescribing and dispensing pain pills to drug addicts and drug dealers.
The investigation revealed that Godfrey Ilonzo financed and operated at least eight clinics in the metro Atlanta area under the “AMARC” name, including the Lakewood pain clinic and one in Tyrone, Georgia. Bona Ilonzo (Godfrey Ilonzo’s wife) served as the office manager at the Lakewood AMARC pain clinic. At various times, Dr. Nevorn Askari and Dr. William Richardson served as the primary doctors for the AMARC pain clinics. Rosemary Ofume and Donatus Iriele operated the Medicine Center Pharmacy across the street from one of the pain clinics. Both Godfrey and Bona Ilonzo, as well as Drs. Askari and Richardson, pleaded guilty to charges related to their conduct at the clinic. Ofume and Iriele were later convicted at trial of drug trafficking and money laundering charges related to the pharmacy.
Ofume and Iriele worked together with the Ilonzos and Drs. Askari and Richardson to facilitate the dispensing of oxycodone pills and other opiates to addicts and distributors. After customers received prescriptions from Askari and Richardson for medically inappropriate and potentially lethal combinations of opiates and other controlled substances, clinic staff told customers to fill their prescriptions across the street at “Rosemary’s pharmacy” (Medicine Center Pharmacy operated by Ofume and Iriele). Many of those customers traveled to the AMARC clinics and Ofume/Iriele’s pharmacy from counties throughout Georgia and from other states (including Alabama and Ohio).
Customers waited for hours at the Lakewood AMARC pain clinic and paid cash to receive prescriptions for oxycodone/hydrocodone, Xanax, and Soma (the “holy trinity” for resale on the street) before purchasing the pills at high prices from Ofume and Iriele’s pharmacy. Employees at the AMARC clinics and Ofume and Iriele’s pharmacy received discounts and special treatment, including free office visits and reduced prices for pills dispensed at the pharmacy. Ofume lied to pharmaceutical distributors to procure astronomical quantities of oxycodone and other prescription pain pills that were then dispensed to customers having obvious signs of addiction or drug diversion. Between 2009 and 2012, Medicine Center Pharmacy purchased 1,360,410 opioid pills. Significantly, in 2009, the pharmacy purchased eleven times more oxycodone than the average pharmacy in the state of Georgia.
During the course of the conspiracy, Ofume and Iriele generated more than $5.1 million dollars from unlawful prescriptions issued by doctors affiliated with the AMARC clinics (constituting more than 90% of the pharmacy’s revenue). Iriele used pharmacy proceeds to purchase three luxury vehicles for his and Ofume’s personal use. Iriele and Ofume also laundered pharmacy proceeds by purchasing vehicles in the United States for individuals in Nigeria while concealing that those customers were depositing equivalent amounts of local Nigerian currency into Iriele’s personal Nigerian bank account.
In 2007, the Georgia Board of Pharmacy had revoked Iriele’s pharmacy license (and temporarily suspended Ofume’s pharmacy license) after finding that Ofume and Iriele had failed to account for more than 600,000 controlled substances pills at their pharmacies and had dispensed controlled substances pursuant to more than 1,400 forged prescriptions.
Donatus Iriele, 63, of Atlanta, Georgia, was sentenced on July 20, 2017, by U.S. District Judge Steve C. Jones to 20 years in prison, followed by three years of supervised release. Rosemary Ofume, 59, also of Atlanta, was sentenced by Judge Jones on the same day, to 19 years in prison, followed by three years of supervised release. Ofume and Iriele were convicted on March 24, 2017, after a three-week jury trial on federal drug and money laundering charges in connection with their operation of Medicine Center Pharmacy, in Atlanta.
Based on the convictions, Ofume and Iriele were ordered to forfeit to the United States $16,767 in cash seized from the pharmacy, $133,892.74 in funds seized from the pharmacy’s bank account, a 2009 BMW X5, a 2008 Mercedes Benz ML550, and a 2007 BMW X5. The Georgia Board of Pharmacy suspended Ofume’s pharmacy license (and the license of Medicine Center Pharmacy) as a result of the convictions.
Judge Jones ordered a community restitution award requiring Ofume and Iriele to pay a total of $5 million under Title 18, United States Code, Section 3663(c), to be distributed to the Georgia Department of Behavioral Health and Developmental Disabilities, and the Criminal Justice Coordinating Council for victims’ assistance, in restitution for the public harm caused by Ofume and Iriele’s conduct. Such a restitution order is the first of its kind in the nation against pharmacists, which also recognizes the public harm diverted opiates have caused the citizens of the state of Georgia.
This case was investigated by the Drug Enforcement Administration and Internal Revenue Service Criminal Investigation.
Assistant U.S. Attorneys Laurel Boatright, Cassandra Schansman, and Michael Brown prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.com.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Eight members of large tax fraud conspiracy sentenced in false claims and money-laundering schemeRead the Press Release
ATLANTA – Eight additional members of a large Atlanta-based tax fraud and money laundering conspiracy have been sentenced for their roles in stealing funds from the U.S. Treasury. The defendants were all indicted in United States v. Calvin C. Barnes a/k/a “Big Cal”, Sharon Cecal, Kenneth Cottrell, Zechariah Daniel a/k/a “Zech” a/k/a Leroy Harris, Derrick Lawson, Reynolds Scott III, Anthony Shivers and Calvin C. William a/k/a “Lil’ Cal.”
“These defendants conspired to file false claim after false claim against the United States, treating the U.S. Treasury like an ATM and stealing from every honest taxpayer in the process,” said U.S. Attorney Byung J. Pak. “In addition to prison sentences, these defendants have all been ordered to pay substantial amounts of restitution to claw back the fruits of their criminal conduct and ensure crime doesn’t pay.”
“Tax fraud schemes are becoming more complex and perpetrators are continually creating new ways to generate fraudulent claims to the IRS,” said James Dorsey, Acting Special Agent in Charge. “IRS Criminal Investigation will continue to work with our law enforcement partners in uncovering these schemes and bringing the criminals to justice.”
“The Secret Service and our law enforcement partners work tirelessly to maintain the taxpayers’ trust in our economic system. We will continue to combine our investigative capabilities to actively pursue and arrest offenders who violate this trust,” said Kenneth Cronin, Special Agent in Charge of the United States Secret Service, Atlanta Field Office. “Today’s sentencing should be a warning to criminals and their conspirators that stealing from the American people will not go unpunished.”
According to U.S. Attorney Pak, the charges and other information presented in court: In 2009, 2010, 2011 and 2012, members of the conspiracy filed and caused to be filed over 100 fraudulent corporate tax returns, claiming $35 million in refunds for fuel taxes falsely claimed to have been paid on fuel purchased for off-road company vehicles. The IRS actually paid the co-conspirators over $5.6 million from those falsely claimed tax refunds, before those losses were stopped at the time of the first arrest in this investigation in May 2012. The false claims were made in the names of hijacked corporations and shell companies, none of which used off-road vehicles or paid the fuel tax claimed for refund.
The Internal Revenue Service began investigating the case while the conduct was still ongoing, based on certain similarities in the returns. However, there was a large break in the investigation when a defendant in an unrelated federal fraud case learned of the conspiracy and decided to cooperate with law enforcement. The cooperator worked with agents of the U.S. Secret Service to organize a series of undercover meetings with members of the conspiracy, which he recorded. In the meetings, Anthony Shivers and his brother Charlie Shivers III, a leader of the conspiracy, described the roles of numerous members of the conspiracy and how the returns were prepared and filed.
Based on the information and recordings provided by the cooperator, agents obtained a search warrant for the home of Charlie Shivers III, which was executed the morning of Saturday, May 12, 2012 at the same time as his arrest. The search recovered numerous copies of fraudulent U.S. corporation income tax returns, copies of tax refund checks, some bank records, notes of addresses to which fraudulent checks had been mailed, and cryptic handwritten notes of the dates returns had been filed and the amounts of refunds requested. Using the large volume of evidence gathered during the search and cooperation from several defendants who began cooperating with law enforcement after it, agents were able to learn the extent of the conspiracy and identify pending fraudulent returns that were part of it, preventing further losses to the U.S. Treasury.
Kenneth Cottrell, who has worked as a tax preparer, was personally involved in the preparation of some of the fraudulent returns. Calvin L. Barnes, Sharon Ceacal, Zechariah Daniel, Derrick Lawson, Reynolds Scott III and Calvin C. Williams were primarily involved with negotiating the fraudulently obtained refund checks and distributing the proceeds to coconspirators. Anthony Shivers assisted his brother Charlie Shivers III with whatever needed to be done in the conspiracy.
U.S. District Judge Thomas W. Thrash imposed sentences on the eight defendants, who had all pleaded guilty, as follows:
- Calvin L. Barnes, a/k/a “Big Cal”, 36, of Forest Park, Georgia, was sentenced to one year and one day in prison, followed by three years of supervised release. The court announced that it intends to also order restitution of approximately $1,043,851, but held open the final restitution order for seven days to determine whether Barnes is entitled to credit for certain pre-sentencing payments to the IRS. Barnes pleaded guilty to count six (theft of government funds) on March 1, 2017.
- Sharon Ceacal, 51, of Warner Robins, Georgia, was sentenced on August 2, 2017 to a year and a day in prison, followed by three years of supervised release, and ordered to pay restitution in the amount of $1,549,250. Ceacal pleaded guilty to count one (false claims conspiracy) on January 11, 2017.
- Kenneth Cottrell, 33, of Atlanta, Georgia, was sentenced on July 31, 2017 to 6 months in prison, followed by three years of supervised release, and ordered to pay restitution in the amount of $754,586. Cottrell pleaded guilty to count one (false claims conspiracy) on March 1, 2017.
- Zechariah Daniel, a/k/a “Zech”, a/k/a “Leroy Harris”, 36, of Atlanta, Georgia, was sentenced on August 2, 2017 to two years, four months in prison, followed by three years of supervised release, and ordered to pay restitution in the amount of $2,566,491. Daniel pleaded guilty to count one (false claims conspiracy) on December 20, 2016.
- Derrick Lawson, 43, of Lithonia, Georgia, was sentenced on August 3, 2017 to one year, six months in prison, followed by three years of supervised release, and ordered to pay restitution in the amount of $1,021,705. Lawson pleaded guilty to count five (theft of government funds) on February 15, 2017.
- Reynolds Scott III, 49, of Atlanta, Georgia, was sentenced on August 2, 2017 to four months in prison, followed by three years of supervised release, and ordered to pay restitution in the amount of $1,549,250. Scott pleaded guilty to count one (false claims conspiracy) on December 20, 2016.
- Anthony Shivers, 47, of Lovejoy, Georgia, was sentenced on May 1, 2017 to three years, five months in prison, followed by three years of supervised release, and ordered to pay restitution in the amount of $505,399. Shivers pleaded guilty to count one (false claims conspiracy) on February 15, 2017.
- Calvin C. Williams, a/k/a “Lil’ Cal”, 48, of Smyrna, Georgia, was sentenced on August 2, 2017 to 10 months in prison, followed by three years of supervised release, and ordered to pay restitution in the amount of $1,876,014. Williams pleaded guilty to count one (false claims conspiracy) on December 20, 2016.
Three other defendants were previously sentenced for their roles in the scheme, after being charged under separate indictments:
- Charlie Shivers III, of Atlanta, Georgia, pleaded guilty to two counts of filing false claims against the United States on August 9, 2012, and was sentenced to seven years in prison, followed by three years of supervised release, and ordered to pay restitution in the amount of $5,630,681.66.
- Kenneth Michael Pettis, Sr., was sentenced to four years, three months in prison, to be followed by three years supervised release. Pettis had tried to cash two large refund checks generated by the scheme, using fake IDs, and pleaded guilty to one count of conspiracy to steal government funds.
- Demetrius Weddle was sentenced to two years, seven months confinement, to be followed by three years supervised release. Weddle pleaded guilty to bank fraud, after being caught trying to cash one of the refund checks generated by the scheme.
This case was investigated by the U.S. Secret Service and Internal Revenue Service Criminal Investigation, with valuable assistance from the DeKalb County Police Department.
Assistant U.S. Attorney Alana R. Black prosecuted the case. The previous, related cases against Charlie Shivers III and Kenneth Michael Pettis were prosecuted by Assistant U.S. Attorneys Gale McKenzie and Alana R. Black, and the case against Demetrius Weddle was prosecuted by Assistant U.S. Attorney Stephen H. McClain.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
30 Members and Associates of the "Nine Trey Gangster Blood" Gang Federally IndictedRead the Press Release
Federal agents have arrested 17 members and associates of the Nine Trey Gangster Bloods criminal street gang on charges of RICO conspiracy and related charges stemming from an indictment returned by a federal grand jury in the Northern District of Georgia on Oct. 12, which was unsealed yesterday. A total of 30 gang members and associates were indicted.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Byung J. “BJay” Pak of the Northern District of Georgia and Special Agent in Charge David J. LeValley of the FBI Atlanta Field Office made the announcement.
“This indictment continues the Department’s efforts to bring to justice the leaders and most violent members of dangerous criminal enterprises like the Nine Trey Gangsters,” said Acting Assistant Attorney General Kenneth A. Blanco. “By charging those most responsible for the violence and drug dealing perpetrated by members and associates of violent street gangs like the Nine Trey Gangsters, we are making our neighborhoods and communities safer.”
“The alleged crimes relate to drug distribution in the Atlanta area and acts of violence perpetrated largely against the gang’s own members,” said U.S. Attorney Pak. “Shockingly, the Nine Trey Gangsters in this case appear willing to kill someone or to commit violence over the smallest perceived slight. Thanks to the hard work of federal and local law enforcement officials, these individuals will now face prosecution for their alleged crimes.”
“The federal grand jury indictment and the resulting arrests sweeps made by the FBI and its many law enforcement partners stem from an intensive and exhausting FBI led Safe Streets Gang Task Force effort to remove these violent gang members, collectively known as Nine Trey Gangsters, from our streets,” said Special Agent in Charge LeValley. “The FBI continues to provide significant investigative resources directed toward the dismantling of these types of organized and violent criminal enterprises that do so much harm to our communities and the joint law enforcement operation clearly illustrates this.”
According to the indictment, beginning at least in 2013, the defendants named in the RICO conspiracy charge committed murder, attempted murder, conspired to commit murder, robbery, extortion, firearm crimes, drug trafficking, obstruction of justice and other crimes in furtherance of the Nine Trey Gangsters.
The RICO conspiracy charge names the following alleged Nine Trey Gangster members as defendants:
-
- Gordon Evans, aka QB, 36, of Atlanta;
- Patrick Caple, aka Zoe, 52, of Atlanta;
- Gary Sartor, aka G-Stacks, aka Stacks, 33, of Atlanta;
- Tyrone Clark, aka Tight-Eye, 36, of Marietta;
- Joseph Riley III, aka Joe Blow, 33, of Atlanta;
- Khajavius Mitchell, aka KJ, 23, of Atlanta;
- Tashied Reed, aka Row, aka Tykune, 24, of Atlanta;
- Michael Jackson, aka Self-Made, aka MJ, 23, of Clayton County, GA;
- Brandon Asberry, aka B5, 28, of Atlanta;
- Jimmy Rosser, aka Lil’ Jimmy, aka Baby Hazo, 25, of Atlanta;
- Kierra Maheia, aka Erra, 26, of Atlanta;
- Cetera Bowles-Griffin, aka Bella, 28, of Atlanta;
- Alfonzo Nalls, aka Offset, 29, of Atlanta; and
- Raekwon Williams, aka B-Ray, 20, of Atlanta.
In addition to the RICO conspiracy, the Indictment alleges multiple counts of attempted murder and conspiracy to commit murder in aid of racketeering against the following alleged Nine Trey Gangster members: Evans; Caple; Sartor; Clark; Riley; Mitchell; Tashied Reed; Jackson; Asberry; Rosser; Bowles-Griffin; Nalls; Williams; Westly Shivers, a/k/a “Owon,” 27, of Atlanta; and Wajzim Reed a/k/a “Wazi,” 23, of Atlanta.
Further, the Indictment alleges a drug trafficking conspiracy that includes trafficking in methamphetamine, marijuana, prescription medications and heroin, against the following alleged Nine Trey Gangster members and associates: Mitchell; Caple; Sartor; Clark; Riley, Tashied Reid; Jackson; Asberry; Rosser; Bowles-Griffin; Williams; Marcus Russell aka Double M, 26, of Jessup, Georgia; Calmetrius Dawkins, 22, of Atlanta; J’mon Hawkins, a/k/a “Monto Pronto,” 21, of Atlanta; Earl Smiley, 27, of Greeneville, South Carolina; Linnie Andrews, 34, of Atlanta; Adrian Ansley, 27, of Bethlehem, Georgia; Fred Arceneaux, 58, of Bonaire, Georgia; Erick Balcazar, 34, of Marietta; Sheena Brown, 32, of Marietta; Tremaine Garrison, aka Paperwork, 35, of Marietta; Cedrick Hill, aka Ced, 25, of Marietta; Monique Preston, 30, of Marietta; Demario Ridley, aka Lil Yo, 23, of Atlanta and Travis Todd aka T-Raw, 25, of Atlanta.
Maheia and Mitchell are charged with maintaining a drug premises that the gang used as a base to conduct their illegal activities. Mitchell and Williams are also charged with possessing firearms during their drug trafficking activities.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the FBI Atlanta’s Safe Streets Gang Task Force, composed of members of the FBI, Atlanta Police Department (PD), Alpharetta PD, Clayton County PD, Cobb County PD, DeKalb PD, Georgia Department of Community Supervision, Georgia Department of Corrections, Gwinnett County PD, Marietta PD and U.S. Postal Inspection Service. Investigative assistance was also proved by the Georgia State Patrol, Covington PD, Clayton County District Attorney’s Office and Gwinnett County District Attorney’s Office. The case is being prosecuted by Trial Attorney Rebecca A. Staton of the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office for the Northern District of Georgia.
-
30 Members and Associates of the “Nine Trey Gangster Blood” Gang Federally IndictedRead the Press Release
ATLANTA - Federal agents have arrested 17 members and associates of the Nine Trey Gangster Bloods criminal street gang on charges of RICO conspiracy and related charges stemming from an indictment returned by a federal grand jury on October 12, 2017. A total of 30 gang members and associates were indicted.
“The alleged crimes relate to drug distribution in the Atlanta area and acts of violence perpetrated largely against the gang’s own members. Shockingly, the Nine Trey Gangsters in this case appear willing to kill someone or to commit violence over the smallest perceived slight,” said U.S. Attorney Byung J. “BJay” Pak. “Thanks to the hard work of federal and local law enforcement officials, these individuals will now face prosecution for their alleged crimes.”
“The federal grand jury indictment and the resulting arrests sweeps made by the FBI and its many law enforcement partners stem from an intensive and exhausting FBI led Safe Streets Gang Task Force effort to remove these violent gang members, collectively known as Nine Trey Gangsters, from our streets,” Said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office. “The FBI continues to provide significant investigative resources directed toward the dismantling of these types of organized and violent criminal enterprises that do so much harm to our communities and the joint law enforcement operation clearly illustrates this.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Beginning by at least 2013, the defendants named in the RICO conspiracy charge committed murder, attempted murder, conspired to commit murder, robbery, extortion, firearm crimes, drug trafficking, obstruction of justice and other crimes in furtherance of the Nine Trey Gangsters.
The indictment alleges that Nine Trey Gangster members committed one murder, attempted to commit two other murders, and conspired to commit multiple additional murders. In addition, the Nine Trey Gangsters allegedly trafficked in illegal narcotics including methamphetamine, illegal prescription drugs, and marijuana.
The RICO conspiracy charge names the following alleged Nine Trey Gangster members as defendants:
-
- Gordon Evans, a/k/a “QB,” 36, of Atlanta, GA;
- Patrick Caple, a/k/a “Zoe,” 52, of Atlanta, GA;
- Gary Sartor, a/k/a “G-Stacks,” 33, of Atlanta, GA;
- Tyrone Clark, a/k/a “Tight-Eye,” 36, of Marietta, GA;
- Joseph Riley, III, a/k/a “Joe Blow,” 33, of Atlanta, GA;
. - Khajavious Mitchell, a/k/a “KJ,” 23, of Atlanta, GA;
- Tashied Reed, a/k/a “Row,” 24, of Atlanta, GA;
- Michael Jackson, a/k/a “MJ,” 23, of Clayton County, GA;
- Brandon Asberry, a/k/a “B5,” 28, of Atlanta, GA;
- Jimmy Rosser, a/k/a “Lil Jimmy,” 25, of Atlanta, GA;
- Kierra Maheia, a/k/a “Erra,” 26, of Atlanta, GA;
- Cetera-Bowles Griffin, a/k/a “Bella,” 28, of Atlanta, GA;
- Alfonzo Nalls, a/k/a “Offset,” 29, of Atlanta, GA; and
- Raekwon Williams, a/k/a “B-Ray,” 20, of Atlanta, GA.
- Gordon Evans, a/k/a “QB,” 36, of Atlanta, GA;
In addition to the RICO conspiracy the Indictment alleges multiple counts of attempted murder and conspiracy to commit murder in aid of racketeering against the following alleged Nine Trey Gangster members: Evans, Caple, Sartor, Clark, Riley, Mitchell, Tashied Reed, Jackson Asberry, Rosser, Bowles-Griffin, Nalls, Williams, Westly Shivers, a/k/a “Owon,” 27, of Atlanta, GA, and Wajzim Reed a/k/a “Wazi,” 23, of Atlanta, GA.
The indictment also alleges a drug trafficking conspiracy that includes trafficking in methamphetamine, marijuana, prescription medications and heroin, against the following alleged Nine Trey Gangster members: Evans; Caple; Sartor; Clark; Riley, Tashied Reid; Jackson; Asberry; Rosser; Bowles-Griffin; Williams; Marcus Russell, a/k/a “Double M,” 26, of Jessup, GA; Calmetrius Dawkins, 22, of Atlanta, GA; J’mon Hawkins, 21, of Atlanta, GA; and Earl Smiley, 27, of Greeneville, SC, and the following alleged gang associates: Linnie Andrews, 34, of Atlanta, GA; Adrian Ansley, 27, of Bethlehem, GA; Fred Arceneaux, 58, of Bonaire, GA; Erick Balcazar, 34, of Marietta, GA; Sheena Brown, 32, of Marietta, GA; Tremaine Garrison, a/k/a “Paperwork,” 35, of Marietta, GA; Cedrick Hill, a/k/a “Ced,” 25, of Marietta, GA; Monique Preston, 30, of Marietta, GA; Demario Ridley, a/k/a “Lil Yo,” 23, of Atlanta, GA; and Travis Todd a/k/a “T-Raw,” 25, of Atlanta, GA.
Maheia and Mitchell are charged with maintaining a drug premises that the gang used as a base to conduct their illegal activities. Mitchell and Williams are also charged with possessing firearms during their drug trafficking activity.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the FBI Atlanta's Safe Streets Gang Task Force, composed of members of the FBI, Atlanta Police Department (PD), Alpharetta PD, Clayton County PD, Cobb County PD, DeKalb PD, GA Dept. of Community Supervision, GA Dept. of Corrections, Gwinnett County PD, Marietta PD and United States Postal Inspection Services. Investigative assistance was also proved by the GA State Patrol, Covington PD, Clayton County District Attorney’s Office and Gwinnett County District Attorney’s Office.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.-
Metro-Atlanta Chiropractors Charged with Healthcare Fraud SchemeRead the Press Release
ATLANTA – Dr. Allan Spagnardi and Dr. Stacy Spagnardi have been arraigned on conspiracy and fraud charges for using their chiropractic clinic to submit false claims to private insurance providers.
“These two chiropractors are alleged to have reported fake patient visits in order to enrich themselves through fraudulent insurance claims,” said U.S. Attorney Byung J. “BJay” Pak. “Fraudulent healthcare billing threatens the integrity of our healthcare system and is ultimately paid for by the taxpayers.”
“Healthcare providers need to think twice before trying to illegally maximize their profits at the expense of honest citizens,” said David J. LeValley, Special Agent in Charge of the Atlanta FBI. “Bringing this case to federal court is an example of our determination to protect those citizens and root out waste, fraud and abuse of our healthcare system.”
“Healthcare fraud has become a significant problem in the world today” said James Dorsey, Acting Special Agent in Charge for IRS Criminal Investigation. “The Spagnardis’ greed and want of a lavish lifestyle led them to commit healthcare fraud and we will continue to support investigative efforts to deter such actions.”
“I’m thankful for the action by the grand jury and for the work on this case by the U.S. Attorney’s office,” Georgia Insurance Commissioner Ralph Hudgens said. “Alleged actions by the Spagnardis hurt not only Georgia citizens, but citizens across the United States in the form of higher insurance premiums.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Dr. Allan Spagnardi and Dr. Stacy Spagnardi operated a chiropractic clinic located in Marietta, Georgia. Over a period of at least three years, the Spagnardis allegedly submitted numerous fraudulent claims to private insurance providers for procedures that never took place.
The indictment alleges that after the Spagnardis obtained their patients’ personal identifying information, they continued to bill private insurance providers for services that were never actually rendered. On some occasions in which the Spagnardis claimed their clinic was treating patients, those patients were not even in the United States when those treatments were supposedly taking place. In one instance, the Spagnardis allegedly claimed that their clinic had 296 patient visits during a week that they were actually on a Royal Caribbean cruise vacation.
The Spagnardis are alleged to have claimed millions of dollars from private insurance providers. The indictment alleges that Stacy Spagnardi spent much of the fraud proceeds at casinos. Stacy Spagnardi is also alleged to have frequently made cash withdrawals under $10,000, with the purpose of evading banking reporting requirements. For his part, Allan Spagnardi allegedly used a portion of the fraud proceeds to purchase a BMW motorcycle and a 2015 BMW M4.
Allan Spagnardi, 38, and Stacy Spagnardi, 50, both of Atlanta, Georgia, were arraigned today before United States Magistrate Judge Alan J. Baverman.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the Internal Revenue Service Criminal Investigation, Federal Bureau of Investigation, the Georgia Office of Commissioner of Insurance, and the Atlanta Police Department.
Assistant United States Attorney Thomas J. Krepp is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Construction Company Owners Sentenced to Federal Prison for Paying over $1 Million in Bribes for City of Atlanta ContractsRead the Press Release
ATLANTA - Elvin R. Mitchell, Jr. and Charles P. Richards, Jr. have been sentenced to federal prison for conspiring to pay over $1 million in bribe payments in exchange for receiving lucrative contracts with the City of Atlanta.
“The citizens of Atlanta rightfully expect that government contracts will go to the most qualified bidder and trust that the contracting process will be transparent and fair,” said U. S. Attorney Byung J. “BJay” Pak. “When contractors like Mitchell and Richards pay bribes to get public work, the public’s confidence in the process is undermined and the price of that corruption is borne by the taxpayers.”
“Today’s sentencing hearings in federal court are a direct result of a thorough public corruption investigation consisting of many long hours of work by both federal investigators and their prosecutors,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office. “While it is important that both E.R Mitchell and C.P. Richards, Jr. are held accountable for their criminal conduct, the FBI feels that it is also important for others, either public officials or those attempting to illegally influence them, to take note of the harsh consequences of such actions.”
“IRS Criminal Investigation is committed to investigating individuals who think that they can get a competitive advantage by cheating the system by paying bribes to get government contracts,” said James Dorsey, Acting Special Agent in Charge, Atlanta Field Office. “Today’s sentencings should act as a deterrence to those who think that they can continue to pay bribes in order to get work.”
According to United States Attorney Pak, the charges, and other information presented in court: Elvin R. Mitchell, Jr. serves as the owner and operator of E.R. Mitchell Company, Cascade Building System, LLC., E.R. Mitchell Group, Inc. and EC & WT Construction Company, Inc., d/b/a E.R. Mitchell Construction Co. Richards serves as the owner and/or principal of the construction companies C.P. Richards Construction Co., Inc., and C.P. Richards & Associates, Inc.
In an effort to obtain construction-related contracts with the City of Atlanta, Georgia, Mitchell and Richards conspired to pay and paid an individual to obtain government contracts. From approximately 2010 to August 2015, Mitchell paid over $1,000,000 and Richards paid over $185,000 to an individual in exchange for City of Atlanta contracts, believing that some of the money would be paid to city officials who exercised influence over the contracting process.
Mitchell also laundered the money received from the City of Atlanta by attempting to conceal the source of the money and by attempting to evade federal currency transaction reporting requirements by withdrawing cash in amounts under $10,000.
Mitchell, 63, of Atlanta, has been sentenced to 5 years in prison, 3 years of supervised release, and was ordered to pay $1,120,535 in restitution. On January 25, 2017, Mitchell pleaded guilty to conspiratorial bribery and money laundering.
Richards, 65, of Tucker, Ga., has been sentenced to 2 years and 3 months in prison, 3 years of supervised release, and was ordered to pay $193,000 in restitution. On February 16, 2017, Richards pleaded guilty to conspiratorial bribery
The Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation investigated this case.
First Assistant United States Attorney Kurt R. Erskine and Assistant United States Attorney Jeffrey W. Davis prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Methadone Clinic Pays Civil Penalty to Settle Alleged Controlled Substances Act ViolationsRead the Press Release
ATLANTA – MBA Wellness Centers, LLC, a methadone clinic located in Stockbridge, Georgia, has agreed to pay a civil settlement of $100,000 to resolve allegations that it violated the recordkeeping requirements of the Controlled Substances Act. MBA Wellness Centers, LLC, also has agreed to additional oversight from the DEA.
“Dispensing controlled substances without providing a valid prescription risks patient health and safety, and creates a risk that those substances will not be used for legitimate medical purposes,” said U.S. Attorney John Horn. “At a time when our district and the nation are facing a growing problem with the illegal diversion of controlled substances, our office is committed to enforcing the requirements of the Controlled Substances Act.”
Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division commented, “MBA Wellness Centers, LLC spun a web of deception when it failed to maintain accurate recordkeeping of its inventory. Such careless behavior allows for substances to be diverted and sold on the black market with no true measure of accountability. This civil penalty is a proactive step that DEA Diversion and its federal, state and local partners can take to discourage other negligent Narcotic Treatment Programs from engaging in such behavior.”
The government alleges that MBA Wellness Centers, LLC, failed to keep accurate records of controlled substances and dispensed controlled substances to patients without a valid prescription from a physician. The claims settled are allegations only, and there has been no determination of liability.
Congress enacted the Controlled Substances Act, 21 U.S.C. §§ 801-904, to deter the illegal importation, manufacture, distribution, possession, and improper use of controlled substances, including prescription medications. Under the Controlled Substances Act, individuals and entities registered with the DEA are required to maintain complete and accurate records of all controlled substances and security systems so that no controlled substances are lost, stolen, or inappropriately dispensed. Violations of the recordkeeping requirements subject DEA registrants to civil monetary penalties of up to $14,502 for each violation. Dispensing a controlled substance without a valid prescription from a practitioner subjects DEA registrants to civil monetary penalties of up to $62,500 for each violation.
This case was investigated by Diversion Investigators from the Drug Enforcement Administration.
The civil settlement was reached by Assistant U.S. Attorneys David O’Neal and Lena Amanti.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Attorney General Jeff Sessions announces reinvigoration of Project Safe Neighborhoods and other actions to reduce rising tide of violent crimeRead the Press Release
ATLANTA – Attorney General Jeff Sessions announced several Department of Justice actions to reduce the rising tide of violent crime in America. Foremost of those actions is the reinvigoration of “Project Safe Neighborhoods,” a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.
In announcing this recommitment to Project Safe Neighborhoods, the Attorney General issued a memo directing United States Attorneys to implement an enhanced violent crime reduction program that incorporates the lessons learned since Project Safe Neighborhoods launched in 2001.
“According to the FBI, the violent crime rate has risen by nearly seven percent over the past two years, and the homicide rate has risen by more than 20 percent. We cannot be complacent or hope that this is just an anomaly: we have a duty to take action,” said United States Attorney General Jeff Sessions.
“Fortunately, we have a President who understands that and has directed his administration to reduce crime. The Department of Justice today announces the foundation of our plan to reduce crime: prioritizing Project Safe Neighborhoods, a program that has been proven to work.”
“Let me be clear – Project Safe Neighborhoods is not just one policy idea among many. This is the centerpiece of our crime reduction strategy.”
“Taking what we have learned since the program began in 2001, we have updated it and enhanced it, emphasizing the role of our U.S. Attorneys, the promise of new technologies, and above all, partnership with local communities. With these changes, I believe that this program will be more effective than ever and help us fulfill our mission to make America safer,” Sessions said.
“The Northern District of Georgia has actively participated in Project Safe Neighborhoods since its inception,” said U.S. Attorney John Horn. “PSN produced a marked reduction in violent crime in communities in metro Atlanta, where it has been implemented. Just last year, the PSN program awarded a $499,899 grant to the Brookhaven Police Department, Chamblee Police Department, and the DeKalb County Police Department to reduce gang violence in those jurisdictions. The strategy is data-driven and our research partner, Applied Research Services, has a long history of involvement with this program. Finally, the grant includes funds for Rehoboth Baptist Church to provide services to youth to try to prevent them from becoming involved with gangs and crime.”
“The PSN strategy has proven to be effective in reducing gun crime and gang violence.,” said Chief Gary Yandura, Brookhaven Police Department. “The Brookhaven Police Department has used the PSN grant funds received last year to strengthen our anti-gang strategy. Joining forces with Chamblee Police Department and the DeKalb County Police Department, as well as our federal partners and our research and prevention partners, has resulted in significant and strategic investigations that will ultimately reduce gang violence in our communities.”
The Attorney General also announced the following Department of Justice initiatives to help reduce violent crime:
- Additional Assistant U.S. Attorney positions to focus on violent crime – The Department is allocating 40 prosecutors to approximately 20 United States Attorney’s Offices to focus on violent crime reduction.
- More Cops on the Streets (COPS Hiring Grants) – As part of our continuing commitment to crime prevention efforts, increased community policing, and the preservation of vital law enforcement jobs, the Department will be awarding approximately $98 million in FY 2017 COPS Hiring Grants to state, local, and tribal law enforcement agencies.
- Organized Crime and Drug Enforcement Task Force’s (OCDETF) National Gang Strategic Initiative –The National Gang Strategic Initiative promotes creative enforcement strategies and best practices that will assist in developing investigations of violent criminal groups and gangs into enterprise-level OCDETF prosecutions. Under this initiative, OCDETF provides “seed money” to locally-focused gang investigations, giving state, local, and tribal investigators and prosecutors the resources and tools needed to identify connections between lower-level gangs and national-level drug trafficking organizations.
- Critical Training and Technical Assistance to State and Local Partners –The Department has a vast array of training and technical assistance resources available to state, local and tribal law enforcement, victims groups, and others. To ensure that agencies in need of assistance are able to find the training and materials they need, OJP will make available a Violence Reduction Response Center to serve as a “hot line” to connect people to these resources.
- Crime Gun Intelligence Centers (CGIC) – The Department has provided grant funding to support a comprehensive approach to identifying the most violent offenders in a jurisdiction, using new technologies such as gunshot detection systems combined with gun crime intelligence from NIBIN, eTrace, and investigative efforts. These FY 2017 grants were awarded to Phoenix, AZ, and Kansas City, MO.
- Expand ATF’s NIBIN Urgent Trace Program – The Department will expand ATF’s NIBIN Urgent Trace Program nationwide by the end of the year. Through this program, any firearm submitted for tracing that is associated with a NIBIN “hit” (which means it can be linked to a shooting incident) will be designated an “urgent” trace and the requestor will get information back about the firearm’s first retail purchaser within 24 hours, instead of 5 to 6 business days.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Attorney General Jeff Sessions Announces Reinvigoration of Project Safe Neighborhoods and Other Actions to Reduce Rising Tide of Violent CrimeRead the Press Release
ATLANTA – Attorney General Jeff Sessions announced several Department of Justice actions to reduce the rising tide of violent crime in America. Foremost of those actions is the reinvigoration of “Project Safe Neighborhoods,” a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.
In announcing this recommitment to Project Safe Neighborhoods, the Attorney General issued a memo directing United States Attorneys to implement an enhanced violent crime reduction program that incorporates the lessons learned since Project Safe Neighborhoods launched in 2001.
“According to the FBI, the violent crime rate has risen by nearly seven percent over the past two years, and the homicide rate has risen by more than 20 percent. We cannot be complacent or hope that this is just an anomaly: we have a duty to take action,” said United States Attorney General Jeff Sessions.
“Fortunately, we have a President who understands that and has directed his administration to reduce crime. The Department of Justice today announces the foundation of our plan to reduce crime: prioritizing Project Safe Neighborhoods, a program that has been proven to work.”
“Let me be clear – Project Safe Neighborhoods is not just one policy idea among many. This is the centerpiece of our crime reduction strategy.”
“Taking what we have learned since the program began in 2001, we have updated it and enhanced it, emphasizing the role of our U.S. Attorneys, the promise of new technologies, and above all, partnership with local communities. With these changes, I believe that this program will be more effective than ever and help us fulfill our mission to make America safer,” Sessions said.
“The Northern District of Georgia has actively participated in Project Safe Neighborhoods since its inception,” said U.S. Attorney John Horn. “PSN produced a marked reduction in violent crime in communities in metro Atlanta, where it has been implemented. Just last year, the PSN program awarded a $499,899 grant to the Brookhaven Police Department, Chamblee Police Department, and the DeKalb County Police Department to reduce gang violence in those jurisdictions. The strategy is data-driven and our research partner, Applied Research Services, has a long history of involvement with this program. Finally, the grant includes funds for Rehoboth Baptist Church to provide services to youth to try to prevent them from becoming involved with gangs and crime.”
“The PSN strategy has proven to be effective in reducing gun crime and gang violence.,” said Chief Gary Yandura, Brookhaven Police Department. “The Brookhaven Police Department has used the PSN grant funds received last year to strengthen our anti-gang strategy. Joining forces with Chamblee Police Department and the DeKalb County Police Department, as well as our federal partners and our research and prevention partners, has resulted in significant and strategic investigations that will ultimately reduce gang violence in our communities.”
The Attorney General also announced the following Department of Justice initiatives to help reduce violent crime:
- Additional Assistant U.S. Attorney positions to focus on violent crime – The Department is allocating 40 prosecutors to approximately 20 United States Attorney’s Offices to focus on violent crime reduction.
- More Cops on the Streets (COPS Hiring Grants) – As part of our continuing commitment to crime prevention efforts, increased community policing, and the preservation of vital law enforcement jobs, the Department will be awarding approximately $98 million in FY 2017 COPS Hiring Grants to state, local, and tribal law enforcement agencies.
- Organized Crime and Drug Enforcement Task Force’s (OCDETF) National Gang Strategic Initiative –The National Gang Strategic Initiative promotes creative enforcement strategies and best practices that will assist in developing investigations of violent criminal groups and gangs into enterprise-level OCDETF prosecutions. Under this initiative, OCDETF provides “seed money” to locally-focused gang investigations, giving state, local, and tribal investigators and prosecutors the resources and tools needed to identify connections between lower-level gangs and national-level drug trafficking organizations.
- Critical Training and Technical Assistance to State and Local Partners –The Department has a vast array of training and technical assistance resources available to state, local and tribal law enforcement, victims groups, and others. To ensure that agencies in need of assistance are able to find the training and materials they need, OJP will make available a Violence Reduction Response Center to serve as a “hot line” to connect people to these resources.
- Crime Gun Intelligence Centers (CGIC) – The Department has provided grant funding to support a comprehensive approach to identifying the most violent offenders in a jurisdiction, using new technologies such as gunshot detection systems combined with gun crime intelligence from NIBIN, eTrace, and investigative efforts. These FY 2017 grants were awarded to Phoenix, AZ, and Kansas City, MO.
- Expand ATF’s NIBIN Urgent Trace Program – The Department will expand ATF’s NIBIN Urgent Trace Program nationwide by the end of the year. Through this program, any firearm submitted for tracing that is associated with a NIBIN “hit” (which means it can be linked to a shooting incident) will be designated an “urgent” trace and the requestor will get information back about the firearm’s first retail purchaser within 24 hours, instead of 5 to 6 business days.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Five members of credit card theft ring plead guiltyRead the Press Release
ATLANTA – Treveyon Herring, one of five defendants charged with stealing credit cards from the baggage loading areas of Hartsfield-Jackson International Airport and a private mail sorting facility, has pleaded guilty to wire fraud conspiracy.
“Americans depend on the United States mail system to carry some of their most vital and sensitive correspondence, like the new credit cards in this case,” said U. S. Attorney John Horn. “By exploiting the airport’s baggage loading processes, these defendants were able to plunder mail bags and steal new credit cards on their way to customers across the country.”
“Postal Inspectors have a long and proud history of protecting the U.S. mail from criminal activity,” said David M. McGinnis, Inspector in Charge, Charlotte Division. “These defendants violated the trust bestowed upon them to handle mail and the law for their own personal gain. The U.S. Postal Inspection Service takes allegations of mail theft seriously and investigates these matters to ensure the integrity of the U.S. Postal Service.”
“Herring and his conspirators were creative in their scheme to steal victims’ credit cards and defraud them,” said Kenneth Cronin, Special Agent in Charge of the United States Secret Service, Atlanta Field Office. “The United States Secret Service will continue to collaborate with our law enforcement partners to arrest criminals who use their trustworthy positions to violate unsuspecting victims.”
According to U.S. Attorney Horn, the charges and other information presented in court: From December of 2015 until April of 2017, the defendants stole credit cards from the baggage loading areas of Hartsfield-Jackson International Airport and a private mail sorting facility. Cornelius Henderson, through his employment, had access to the airport’s baggage loading areas, where he stole mail that contained credit cards. Treveyon Herring worked at a private mail sorting facility where he also stole mail containing credit cards. LaSuhn Turner and Brandon Foster assisted in the scheme by obtaining cash from the stolen credit cards.
Turner used stolen credit cards at ATMs to obtain cash advances, while Foster, through his employment as a bank teller, executed fraudulent transactions at the bank when presented with stolen credit cards by other co-conspirators. Quentin Pickett was involved in almost every aspect of the scheme alleged in the indictment, interacting with co-conspirators who stole credit cards and those who were involved in extracting value from the stolen credit cards.
The stolen credit cards were shipped via the U.S. Postal Service to the rightful accountholders, who were located throughout the United States. In total, the scheme caused over $1.7M in fraud-related losses.
All five defendants were charged in a criminal indictment on May 23, 2017. Herring is the last of the five defendants to enter a guilty plea in the case. The other defendants are as follows:
- Quentin Pickett, 25, of Jonesboro, Georgia, pleaded guilty to wire fraud conspiracy and aggravated identity theft on September 25, 2017, and agreed to the entry of a restitution order in the amount of $1,759,301.14. Pickett is scheduled to be sentenced on January 10, 2018.
- Cornelius Henderson, 23, of Riverdale, Georgia, pleaded guilty to wire fraud conspiracy and aggravated identity theft on September 25, 2017, and agreed to the entry of a restitution order in the amount of $429,142.26. Henderson is scheduled to be sentenced on January 9, 2018.
- LaSuhn Turner, 25, of Stockbridge, Georgia, pleaded guilty to wire fraud conspiracy on August 30, 2017, and agreed to the entry of a restitution order in the amount of $70,483.05. Turner is scheduled to be sentenced on December 5, 2017.
- Brandon Foster, 24, of Stockbridge, Georgia, pleaded guilty to wire fraud conspiracy on August 24, 2017, and agreed to the entry of a restitution order in the amount of $14,831.00. Foster is scheduled to be sentenced on November 17, 2017.
Treveyon Herring, 22, of Forest Park, Georgia, is scheduled to be sentenced on January 10, 2018. As part of a plea agreement, Herring agreed to the entry of a restitution order in the amount of $1,341,778.96. All five defendants in this case are scheduled to be sentenced by U.S. District Judge Eleanor L. Ross.
This case is being investigated by the U.S. Postal Inspection Service and the U.S. Secret Service.
Assistant U.S. Attorney Samir Kaushal is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
College Park man sentenced to 20 years for child pornography crimesRead the Press Release
ATLANTA - Lionel Lewis Alls, Jr., has been sentenced to 20 years for distributing child pornography. In addition to sharing child pornography, Alls enticed minors as young as 8-years-old to send nude images and videos of themselves to him.
“Alls demonstrated in horrific ways how the Internet can be used by criminals to victimize our children,” said U. S. Attorney John Horn. “His manipulation of young girls to send nude photos and videos of themselves is one more example of just how far these criminals will go to satisfy their disgusting desires. Parents must be extremely vigilant with children when they venture online, especially when it involves their use of social media.”
“The internet is a very important and useful resource, but unfortunately can also be used for illegal activity in the darkest corners of our society, as criminals seek to prey on the most vulnerable of our population,” said David J. LeValley, Special Agent in Charge of the FBI’s Atlanta Field Office. “Alls actions are the worst of depravity and no sentence can lessen the harm he has caused to these young children. But at least he will no longer be able to pursue his egregious acts.”
According to U.S. Attorney Horn, the charges and other information presented in court: Alls used the Internet to access, download, and distribute child pornography. In one instance, he was aware another man was molesting a toddler in his care and encouraged that individual to share sexually explicit images of the child over the Internet. That defendant subsequently pled guilty to production of child pornography and was sentenced to 35 years imprisonment in the Western District of Virginia.
Alls continued his exploitation by seeking out girls as young as eight years old on websites such as YouTube and engaged in sexually explicit chats with the children. In multiple instances, he enticed young girls to send him sexually explicit images and videos of themselves over the Internet. Alls also shared images of his own genitals with the children.
Lionel Lewis Alls, Jr., 36, of College Park, Georgia, was sentenced to 20 years in prison to be followed by lifetime supervised release. Alls was convicted on these charges on June 28, 2017, after he pleaded guilty.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Jolee Porter prosecuted the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Administrative manager pleads guilty to making over $35,000 in personal charges on Covington Housing Authority credit cardRead the Press Release
ATLANTA – Erica L. Morris pleaded guilty to making more than $35,000 in personal purchases on a Covington Housing Authority credit card that had been issued to her for work-related purchases.
“By stealing more than $35,000, Morris betrayed the trust given to her by the Covington Housing Authority,” said U.S. Attorney John A. Horn. “Morris stole money that was supposed to be used to serve the low-income families of Covington and used the money to support her own lifestyle.”
Nadine E. Gurley, Special Agent in Charge for the U. S. Department of Housing and Urban Development, Office of Inspector General said, “HUD's Office of Inspector General is dedicated to protecting HUD from individuals seeking to defraud programs meant for America’s most vulnerable population. The guilty plea announced today is a reminder to citizens that we will aggressively investigate industry professionals who attempt to steal from our programs. The partnership between the U.S. Attorney’s Office and HUD’s Office of Inspector General, has helped demonstrate to taxpayers that those who seek to unlawfully profit by defrauding HUD programs will be vigorously prosecuted.”
According to U.S. Attorney Horn, the charges, and other information presented in court: The Covington Housing Authority (“CHA”) was established in 1965 and, according to its website, seeks to “provide decent, safe, and sanitary housing, in good repair, to low-income families at an affordable rent.”
From January 2006 to September 30, 2016, Morris worked for the CHA, ultimately serving as its Administrative Manager. In that position, Morris managed CHA’s accounting, bookkeeping, human resources, payroll accounts, payable and receivable accounts, service contracts, and maintained the office’s business records. As the Administrative Manager, the CHA issued Morris a merchant credit card to make work-related purchases.
From approximately June 2015 to May 2016, Morris made more than 60 unauthorized personal purchases on her merchant credit card, including buying thousands of dollars’ worth of Visa gift cards. In addition, Morris used her access to the CHA’s telephone account to purchase an iPhone 6 cellular telephone for a family member. Subsequently, Morris used the Visa gift cards to pay various personal living expenses, including paying her husband’s child support costs. In total, Morris unlawfully charged more than $35,000 to her CHA merchant credit card.
On September 13, 2017, Morris, 34, of Covington, Georgia, was charged via a criminal information with one count of Federal Program Theft.
The Department of Housing and Urban Development - Office of the Inspector General is investigating this case.
Assistant U.S. Attorney Jeffrey W. Davis is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
ANMED Health agrees to pay $7 million to settle False Claims Act allegationsRead the Press Release
ATLANTA – AnMed Health, a South Carolina hospital based in Anderson, South Carolina, has agreed to pay over $7 million to resolve allegations that it violated the False Claims Act by submitting false Medicare claims. The settlement announced today resolves allegations that AnMed Health knowingly disregarded the statutory conditions for submitting claims to the Medicare program for a variety of services, including radiation oncology services, emergency department services, and clinic services.
Specifically, the United States alleged that AnMed Health billed for radiation oncology services for Medicare patients when a qualified practitioner was not immediately available to provide assistance and direction throughout the radiation procedure, as required by Medicare regulations. The settlement also resolves allegations that AnMed Health systematically billed a minor care clinic as if it was an Emergency Department and billed Emergency Department services as if they were provided by a physician when, in fact, the services were rendered by mid-level providers. Each of these billing practices resulted in higher reimbursements to AnMed Health.
“This is another example of how the False Claims Act whistleblower provisions help protect the public’s interest,” said U. S. Attorney John Horn. “It also reflects our ongoing commitment to safeguard our federal health care programs and the vital care that they provide.”
“Our goal in pursuing Medicare fraud is not only to protect taxpayers, but also to ensure that Medicare beneficiaries receive the quality care they deserve,” said Barbara Bowens, Civil Chief for the U.S. Attorney’s Office for the District of South Carolina.
“Protecting people with Medicare and guarding health resources are top priorities,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Provider organizations seeking to increase profits at the expense of patients and taxpayers should expect such plans to be costly.”
The allegations settled arose from a lawsuit filed in the Northern District of Georgia by a whistleblower formerly employed by AnMed Health, Linda Jainniney, under the whistleblower provisions of the False Claims Act. Under the Act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. The lawsuit is captioned United States ex rel. Jainniney v. Anmed Health, et al., 1:12-cv-2941 (N.D. Ga.). Under the provisions for whistleblowers under the False Claims Act, Ms. Jainniney will receive $1,202,500 of the United States’ False Claims Act recovery.
This case was investigated by the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Attorney’s Office for the District of South Carolina, and the Department of Health and Human Services Office of the Inspector General.
The civil settlement was reached by Assistant U.S. Attorneys David A. O’Neal for the Northern District of Georgia and Beth Warren for the District of South Carolina.
The government’s resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 900-HHS-TIPS (800-447-8477).
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Members of Puerto Rico-based cocaine trafficking operation chargedRead the Press Release
ATLANTA – Vladimir Collazo-Florido, a/k/a “Cannabis,” Marlon Matthew Pittman, a/k/a “Marlo Pittman,” and Carlos Gonzalez-Catala, a/k/a “El Electrico,” each with prior federal convictions for drug trafficking, have been indicted for conspiracy to possess with the intent to distribute cocaine based on a scheme in which they used the U.S. Mail to ship kilogram quantities of cocaine from Puerto Rico to the Atlanta metropolitan area and then to ship their illicit proceeds back to Puerto Rico.
“These defendants have already served sentences for distributing dangerous drugs,” said U.S. Attorney John Horn. “However, instead of learning from their mistakes, they again chose to poison our community and exploit the U.S. Postal Service for their criminal activities.”
Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division stated, “These cocaine distributors sold poison to the community. We exploited their weaknesses and dismantled this once-thriving criminal network. These efforts would not have been successful without the full cooperation between our federal, state, and local law enforcement counterparts.”
“Through our joint enforcement efforts, we’ve dismantled a criminal organization that posed a direct threat to the safety and stability of various communities,” said David M. McGinnis, U.S. Postal Inspector in Charge of the Charlotte Division. “Postal Inspectors will continue to work with our law enforcement partners to investigate and hold those accountable who maliciously utilize the U.S. mail system.”
According to U.S. Attorney Horn, the charges, and other information presented in court: The charges arose from an investigation into money laundering activities in Atlanta as far back as 2012, and eventually led to a series of federally authorized wiretaps on cellular phones used by members of the drug trafficking operation (“DTO”) in Atlanta and Puerto Rico.
The indictment and other information presented in court allege that Collazo-Florido would obtain cocaine from sources in the Dominican Republic and Colombia. Collazo-Florido would then send some of that cocaine through the U.S. Mail to his associates in the contiguous United States, including Pittman in Atlanta, usually in parcels containing up to 1.5 kilograms at a time. In order to avoid detection if the parcels were inspected, the cocaine would be hidden inside seemingly innocent items such as children’s toys, cans of powdered milk, or cans of beans.
The indictment and other information presented in court further allege that Gonzalez-Catala was responsible for packaging and mailing the drugs. Pittman would sell the cocaine to customers in Atlanta, South Carolina, and Maryland. Pittman would then transfer the proceeds of the drug sales back to Puerto Rico by carrying large quantities of cash – including one instance of transporting approximately $90,000 cash in a duffle bag – and other times by purchasing and mailing U.S. Postal Service money orders.
The following individuals were indicted by a federal grand jury on August 15, 2017:
- Vladimir Collazo-Florido, a/k/a “Cannabis,” a/k/a “El Fumador,” a/k/a “Cualquiera,” a/k/a “Humo,” a/k/a “Johnny Bravo,” a/k/a “Aloha,” a/k/a “Smoking Chronic,” 42, of Carolina, Puerto Rico.
- Marlon Matthew Pittman, a/k/a “Marlo Pittman,” a/k/a “007,” a/k/a “7up,” a/k/a “Cowboys,” a/k/a “7,” 43, of Mableton, Georgia.
Carlos Gonzalez-Catala, a/k/a “El Electrico,” a/k/a “Chili,” a/k/a “Chiri,” 41, of Guaynabo, Puerto Rico.
All three individuals have been charged with conspiracy to possess with the intent to distribute at least 500 grams of cocaine. Pittman has also been charged with money laundering. Collazo-Florido and Gonzalez-Catala were arrested in Puerto Rico. They made their first appearance there on August 24, 2017, and were then transferred to Atlanta where they have been ordered detained by U.S. Magistrate Judge Justin S. Anand. Pittman was arraigned in Atlanta on August 28, 2017, before U.S. Magistrate Judge Linda T. Walker.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the Drug Enforcement Administration and U.S. Postal Inspection Service.
Assistant U.S. Attorney Garrett L. Bradford is prosecuting the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.- Vladimir Collazo-Florido, a/k/a “Cannabis,” a/k/a “El Fumador,” a/k/a “Cualquiera,” a/k/a “Humo,” a/k/a “Johnny Bravo,” a/k/a “Aloha,” a/k/a “Smoking Chronic,” 42, of Carolina, Puerto Rico.
City of Atlanta’s former Chief Procurement Officer Adam Smith pleads guilty to taking bribesRead the Press Release
ATLANTA - Adam L. Smith, the former Chief Procurement Officer for the City of Atlanta, has pleaded guilty to conspiring to accept more than $30,000 in bribe payments from a vendor who obtained millions of dollars in city contracts.
“Great trust was placed in Smith as Chief Procurement Officer for the City of Atlanta, and he abused his position to serve his own financial interests,” said U.S. Attorney John A. Horn. “Public corruption offenses, like Smith’s, can erode the confidence that the people have in government.”
“The guilty plea in federal court of former City of Atlanta Procurement Officer Adams will ensure that he is held accountable for his greed based criminal conduct as he now awaits sentencing. It is hoped that this case serves as notice to others that similar such conduct among public officials will not be condoned and that there are severe consequences should that notice go unheeded,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.
“Public service is a public trust, requiring employees to obey laws and ethical principles above private gain. Smith abused his public trust to enrich himself at a cost to the taxpayers,” said James E. Dorsey, Acting Special Agent in Charge, IRS Criminal Investigation. “We will continue to work with the FBI and U.S. Attorney’s Office in making these public corruption investigations a priority.”
According to U.S. Attorney Horn, the charges and other information presented in court: From 2003 to February 21, 2017, Smith served as the Chief Procurement Officer for the City of Atlanta, Georgia. As the Chief Procurement Officer, Smith oversaw the City of Atlanta’s purchasing activities and its expenditure of billions of dollars in public money for projects.
The information refers to a vendor who was an executive with a construction firm in Atlanta, Georgia, but does not identify them by name. During Smith’s tenure as the Chief Procurement Officer, Atlanta awarded contracts worth millions of dollars to Vendor’s firm and joint venture projects of which Vendor was a partner.
From at least 2015 to January 2017, Smith met privately with Vendor on multiple occasions, frequently at local restaurants. During these meetings, Smith and Vendor discussed Atlanta procurement projects, bids, and solicitations. Often at the time of these meetings, Vendor was actively seeking contracts, projects, and work with Atlanta.
After most of these meetings, Vendor and Smith met in the restaurant’s bathroom, where Vendor paid Smith approximately $1,000 in cash. In return for the bribe payments, Vendor expected Smith to use his position and power as Atlanta’s Chief Procurement Officer to assist Vendor with contracting/procurement with Atlanta and to furnish Vendor with future benefits and favors when needed.
Given his position, Smith was required to sign annually a financial disclosure statement certifying that he had not received more than $5,000 in annual income from any corporation, partnership, proprietorship, or other business entity other than Atlanta. Additionally, under Atlanta’s Procurement Code, Smith also had to “make a written determination as to the existence” of any “personal or organizational conflicts of interest exist” between vendors and Atlanta before awarding a vendor a solicited contract. Similarly, Atlanta’s Procurement Code mandated that Smith “certify to the city council” that the winning vendors had disclosed to Atlanta any “organizational and personal relationships” and that the “award of the contract [was] appropriate.”
Furthermore, in exchange for those cash payments:
- Smith met with Vendor on a regular basis;
- Smith provided Vendor with information and counsel regarding Atlanta’s procurement processes (among other information);
- When Vendor’s firm or joint venture became the successful bidder on an Atlanta contract or Request for Proposal, Smith approved and submitted the award of such procurement projects or bids to Atlanta’s mayor and city council for final authorization;
- Smith never disclosed his ongoing financial relationship with Vendor and/or Vendor’s firm on his Financial Disclosure Statements to Atlanta; and
- Smith never advised Atlanta’s City Council that the Vendor’s firm or joint venture had failed to disclose its organizational and personal relationships with him.
In total, from at least 2015 to January 2017, Vendor paid Smith more than $30,000 in cash.
Adam L. Smith, 53, Atlanta, Georgia, pleaded guilty to conspiratorial bribery. Sentencing is scheduled for January 16, 2018, before U.S. District Judge Steve C. Jones.
The Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation are investigating this case.
Assistant U.S. Attorneys Jeffrey W. Davis, Kurt R. Erskine, and Jill E. Steinberg are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Senior MARTA executive pleads guilty to false invoice scam causing MARTA to pay $500,000 for work never performedRead the Press Release
ATLANTA - Joseph J. Erves, MARTA’s former Senior Director of Operations, has pleaded guilty in federal court to orchestrating a false invoice scheme that resulted in MARTA paying more than $500,000 for maintenance work that was never performed and for funneling most of the money back into his personal bank accounts.
“Erves was entrusted to use taxpayer dollars to operate MARTA effectively and responsibly,” said U.S. Attorney John A. Horn. “His theft of $500,000 in MARTA funds was a blatant display of his desire for self-enrichment at the expense of the public interest.”
According to U.S. Attorney Horn, the charges, and other information presented in court: the Metropolitan Atlanta Rapid Transit Authority (“MARTA”) is the principal public transportation operator in the Atlanta metropolitan area, providing fixed rail and bus service to more than 500,000 passengers per weekday. Formed in 1965, MARTA is a multi-county governmental agency with a 2016 annual budget of more than $880 million.
From 1993 to 2017, Erves worked for MARTA, ultimately serving as its Senior Director of Operations. In that position, Erves oversaw the maintenance of all of MARTA’s buses and rail cars and had the authority to approve payments up to $10,000 to vendors for work performed on behalf of MARTA.
Beginning in or about 2010, Erves retained three different vendors purportedly to perform maintenance projects for MARTA, including repairing brake testing equipment and fixing various MARTA tools and equipment. From approximately June 2010 to December 2016, Erves had fake invoices prepared on behalf of the three vendors for more than 40 maintenance projects for which no work was performed.
Erves then used the false invoices as bases to authorize payments to the three vendors. In many cases, Erves personally approved payments to the vendors knowing that the vendors had not performed any work for MARTA.
After being paid, the three vendors funneled most of the money received from MARTA into Erves’s personal bank accounts. Subsequently, Erves used the money deposited into his accounts to pay personal expenses, such as multiple purchases at high-end department stores and the purchase of a Porsche 911. Based on Erves’s authority and representations, MARTA paid the three vendors more than $500,000 for maintenance projects where no worked was actually performed.
On August 24, 2017, Erves, 52, of Lithonia, Georgia, was charged via criminal information with one count of Federal Program Theft. Erves has pleaded guilty to the information.
The Federal Bureau of Investigation and the MARTA Police Department are investigating this case.
Assistant U.S. Attorneys Jeffrey W. Davis and Alison Prout are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Federal inmate sentenced to prison time for escaping from Atlanta’s prison camp to celebrate his birthdayRead the Press Release
ATLANTA – Federal inmate Fernando A. Settles has been sentenced to an additional one year, three months in prison for escaping from the United States Penitentiary’s minimum-security camp in Atlanta, Georgia.
“Escapes from prison pose significant safety risks to the public,” said U. S. Attorney John A. Horn. “Settles escaped from Atlanta’s prison camp to celebrate his birthday. He decided that instant gratification was more important than serving his time and being released at the end of his sentence. Now he will have an extra year to reflect on that choice.”
According to U.S. Attorney Horn, the charges and other information presented in court: the U.S. Penitentiary in Atlanta, Georgia (“USP Atlanta”) is a medium-security federal prison for male inmates operated by the Federal Bureau of Prisons. USP Atlanta also has a detention center for pre-trial inmates and a satellite prison camp for minimum-security male inmates. The FBI and the Atlanta Police Department (“APD”) have been engaged in an investigation to combat instances where USP Atlanta inmates temporarily escape from the prison camp to obtain contraband to smuggle back into the prison or to visit nearby restaurants, hotels, and residences.
In August 2009, Settles was sentenced to 20 years in prison after being convicted of conspiratorial and substantive drug trafficking offenses. From approximately September 2016 to May 2017, Settles was an inmate at the prison camp of USP Atlanta, with a scheduled release date of July 29, 2025.
On May 8, 2017, the FBI and APD conducted surveillance along the fence line of USP Atlanta. At approximately 3:20 that morning, Settles escaped from the prison camp at USP Atlanta. Shortly thereafter, the FBI arrested Settles in a wooded area outside of USP Atlanta’s outer prison fence. At the time of his arrest, Settled had a cellular telephone and two empty duffel bags in his possession.
On May 12, 2017, Fernando A. Settles, 36, of Augusta, Georgia, was charged via criminal information with escaping from federal custody. Settles was sentenced to a one year, three month term of imprisonment (to be served after he completes his current 20-year prison sentence).
The FBI and APD investigated this case.
Assistant U.S. Attorneys Jeffrey W. Davis and Timothy Lee prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Nightclub owner and long-time fugitive sentenced to 11 years of federal prison for drug traffickingRead the Press Release
ATLANTA – Christopher Dixon, a/k/a “Yardman,” a fugitive from justice for almost six years, has been sentenced to prison for trafficking over 1,000 pounds of marijuana and approximately 25,000 pills of MDMA (ecstasy) and BZP (a drug similar to ecstasy). Dixon was involved with a drug organization that distributed over 1 million pills of MDMA and BZP.
“Dixon, and the drug organization that he worked with, distributed a staggering amount of drugs in this District,” said U.S. Attorney John A. Horn. “Fortunately, after years on the lam, Dixon has been brought to justice, and will serve his sentence like the other defendants in this case.”
Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division stated of the sentencing, “This high-level poly-drug trafficker was “collared” because of the great working relationship that DEA has with its federal, state and local counterparts and the United States Attorney’s Office. Mr. Dixon eluded justice for several years, but his days on the run came to an abrupt end when he was ultimately captured. He will now spend well-deserved time in prison for the crimes he committed and his apprehension makes our communities a safer place today.”
According to U.S. Attorney Horn, the charges and other information presented in court: From late-2009 to late-2010, several state, federal, and international agencies conducted an investigation of an Atlanta drug trafficking organization that used corrupt law enforcement officers to further its illegal activities. Ultimately, the investigation resulted in the arrest, indictment, and conviction of more than 15 defendants, including Dixon.
For his part, Dixon executed countless drug transactions and supervised several lower-level drug traffickers, while simultaneously running Club Xpose (a nightclub in DeKalb County). In total, Dixon distributed approximately 25,000 pills of MDMA and BZP and 1,000 pounds of marijuana. In particular, on June 21, 2010, based on wiretapped calls and a covert surveillance operation, law enforcement officers caught Dixon in a stolen car with approximately 4,000 pills of MDMA and BZP and loaded handgun. During the course of the conspiracy, Dixon used former-DeKalb County Police Officer Donald Bristol to obtain sensitive law enforcement information. Bristol was previously sentenced to a year and a day in prison for his conduct.
On December 15, 2010, law enforcement officers executed a series of coordinated arrests. As part of the take-down, agents attempted to arrest Dixon and also had him contacted via telephone. Nevertheless, Dixon failed to turn himself in and remained a fugitive from justice for almost six years. In November 2016, Dixon was arrested on obstruction and marijuana trafficking charges in Franklin County, Georgia.
Christopher Dixon, 44, formerly of DeKalb County, Georgia, has been sentenced to 11 years in prison to be followed by five years of supervised release. Dixon pleaded guilty to a conspiratorial drug trafficking charge on June 16, 2017.
This case was investigated by the Drug Enforcement Administration; Immigration Customs Enforcement (ICE); ICE - Office of Professional Responsibility; ICE - Office of Inspector General; ICE - Homeland Security Investigations; Jamaican Constabulary Force - Anti-Corruption Branch; DeKalb County Police Department; Internal Revenue Service - Criminal Investigation; Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, and Delta Airlines Corporate Security.
Assistant U.S. Attorneys Jeffrey W. Davis, L. Skye Davis, and Dahil Goss prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.com.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Two Marietta men sentenced to prison for gun, drug offensesRead the Press Release
ATLANTA - Kyle Matthew Nixon and Eric Eugene Gamez have been sentenced to prison for drug trafficking and gun offenses.
“These defendants were distributing cocaine and heroin while protecting their drug business with an arsenal of firearms,” said U. S. Attorney John Horn. “Their actions disregarded the safety of our community, but swift action by law enforcement kept them from causing further harm.”
“The success of this investigation is a result of the collaborative efforts of ATF and our local partners,” said ATF Special Agent in Charge Wayne Dixie. “ATF will continue to dedicate federal resources in conjunction with the crucial contributions of local agencies towards the eradication illegal drug and firearm activity.”
According to U.S. Attorney Horn, the charges and other information presented in court: On April 6, 2016, agents executed a search warrant at the residence of Kyle Nixon. Nixon and Eric Gamez attempted to flee from the house, but were quickly apprehended by law enforcement. Inside the house, Nixon and Gamez were cutting and packaging over 400 grams of cocaine and over 300 grams of heroin, which they intended to sell. Agents also seized over $13,000 in cash and 19 firearms, including an AK-47 rifle.
On July 20, 2017, Kyle Matthew Nixon, 26, of Marietta, Georgia, was sentenced to eight years in prison to be followed by five years of supervised release. Nixon was convicted on these charges on April 11, 2017, after he pleaded guilty.
On September 14, 2017, Eric Eugene Gamez, 27, also of Marietta, Georgia, was sentenced to nine years, nine months in prison to be followed by five years of supervised release. Gamez was convicted on these charges on February 28, 2017, after he pleaded guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Marietta/Cobb/Smyrna Organized Crime Unit.
Assistant U.S. Attorney Jolee Porter prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Administrative manager made over $35,000 in personal charges on Covington Housing Authority credit cardRead the Press Release
ATLANTA – Erica D. Morris has been charged with making more than $35,000 in personal purchases on a merchant credit card that the Covington Housing Authority issued her for work-related purchases.
“Morris abused her position with Covington Housing Authority by ringing up more than $35,000 in personal charges,” said U.S. Attorney John A. Horn. “In effect, Morris diverted money earmarked for the low-income families for which the Covington Housing Authority provides housing into her own pocket.”
“The actions taken today should serve as a strong notice of our continuing commitment to root out all forms of fraud, especially as it relates to federal housing resources directed to assist less fortunate American families,” said Nadine E. Gurley, Special Agent in Charge, U.S. Department of Housing and Urban Development, Office of Inspector General. “We remain steadfast in working with the U.S. Department of Justice to pursue any unscrupulous individuals that may seek to use their position in order to gain an illegal personal benefit.”
According to U.S. Attorney Horn, the charges, and other information presented in court: The Covington Housing Authority (“CHA”) was established in 1965 and, according to its website, seeks to “provide decent, safe, and sanitary housing, in good repair, to low-income families at an affordable rent.”
From January 2006 to September 30, 2016, Morris worked for the CHA, ultimately serving as its Administrative Manager. In that position, Morris managed CHA’s accounting, bookkeeping, human resources, payroll accounts, payable and receivable accounts, service contracts, and maintained the office’s business records. As the Administrative Manager, the CHA issued Morris a merchant credit card to make work-related purchases.
From approximately June 2015 to May 2016, Morris made more than 60 unauthorized personal purchases on her merchant credit card, including buying thousands of dollars’ worth of Visa gift cards. In addition, Morris used her access to the CHA’s telephone account to purchase an iPhone 6 cellular telephone for a family member. Subsequently, Morris used the Visa gift cards to pay various personal living expenses, including paying her husband’s child support costs. In total, Morris unlawfully charged more than $35,000 to her CHA merchant credit card.
Erica D. Morris, 34, of Covington, Georgia, has been charged in a criminal information with one count of Federal Program Theft. Morris is expected to plead guilty to the charge shortly after arraignment.
The Department of Housing and Urban Development - Office of the Inspector General is investigating this case.
Assistant U.S. Attorney Jeffrey W. Davis is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Sharebeast.com owner pleads guilty to criminal copyright infringementRead the Press Release
ATLANTA - Artur Sargsyan has pleaded guilty to one felony count of criminal copyright infringement related to his ownership and administration of Sharebeast.com, a file-sharing website that facilitated the unauthorized distribution and reproduction of over 1 billion copies of copyrighted works.
“Through Sharebeast and other related sites, this defendant profited by illegally distributing copyrighted music and albums on a massive scale,” said U. S. Attorney John Horn. “The collective work of the FBI and our international law enforcement partners have shut down the Sharebeast websites and prevented further economic losses by scores of musicians and artists.”
“This is another example of how the FBI and its international law enforcement partners, working together, make it difficult for criminals to profit from illegal activities on the internet,” said David J. LeValley, Special Agent in Charge, FBI Atlanta. “Illegally making money off of the talent of hard working artists will not go unpunished thanks to the dedication and hard work of our FBI agents.”
According to U.S. Attorney Horn, the charges and other information presented in court: Artur Sargsyan owned and operated a number of websites including Sharebeast.com, Newjams.net, and Albumjams.com. From at least 2012 through 2015, Sargsyan illegally distributed and reproduced copyrighted works through Sharebeast.com. Using a network of websites that he owned and operated, including Newjams.net and Albumjams.com, Sargsyan created links to a wide swath of copyright-protected music that was stored on Sharebeast.com. Sharebeast illegally stored and distributed works from scores of artists including Bruno Mars, Linkin Park, Pitbull, Pharrell Williams, Gwen Stefani, Maroon 5, Ariana Grande, Destiny’s Child, Ciara, Katy Perry, Beyonce, Jennifer Hudson, Kanye West, and Justin Bieber.
In numerous instances, Sharebeast distributed and reproduced pre-release copyrighted works meaning that Sargsyan made the songs available before they were commercially available to paying consumers.
From 2012 through 2015, Sargsyan received over 100 emails notifying him that Sharebeast was hosting copyright-infringing works. Despite receiving such notices, the copyright-infringing files were still available for download.
In August 2015, the United States seized control of the domain names Sharebeast.com, Newjams.net, and Albumjams.com. And with the assistance of international law enforcement partners in the United Kingdom and the Netherlands, the FBI seized the computer servers used by Sargsyan to illegally distribute the copyrighted music worldwide.
According to the Recording Industry Association of America, Sharebeast.com was the largest online file-sharing website specializing in the reproduction and distribution of infringing copies of copyrighted music operating out of the United States.
Sentencing for Artur Sargsyan, 29, of Glendale, California has been scheduled for December 4, 2017 at 10:30 am before U.S. District Judge Timothy C. Batten.
This case is being investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorneys Samir Kaushal and Kamal Ghali are prosecuting the case. The prosecution and seizure of the website domain names reflects a coordinated effort by the U.S. Attorney’s Office for the Northern District of Georgia, the Department of Justice Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS), the Office of International Affairs, the FBI’s filed offices in Atlanta, Denver, Chicago, and Los Angeles, and the U.S. Attorney’s Office for the Central District of California. Substantial assistance was provided by CCIPS, United Kingdom’s National Crime Agency, and the Ministry of Security and Justice in the Netherlands, as well as the CCIPS Cyber Crime Lab.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Russian cybcercriminal Roman Seleznev pleads guilty in AtlantaRead the Press Release
ATLANTA – Roman Seleznev has pleaded guilty to conspiracy to commit bank fraud for his role in the 2008 hack of RBS Worldpay. Seleznev was responsible for cashing out $2,178,349 associated with five hacked debit card numbers.
“The defendant and a sophisticated team of hackers stole over $2,000,000 from ATMs across the globe,” said U.S. Attorney John Horn. “This plea shows that we are committed to identifying and bringing to justice cybercriminals from across the globe, wherever they are and however long it takes.”
“This extensive investigation, and resulting guilty plea, truly illustrates that the FBI and its many domestic and international law enforcement partners have the commitment and the ability to reach out and touch the cyber criminals residing abroad that are doing so much harm from places that they feel we can’t go. Having Mr. Seleznev out of play and having dismantled his cyber based operations is a true success story for U.S. law enforcement,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.
“This case demonstrates the Secret Service is committed to protecting our nation's critical financial infrastructure and payment systems,” said Special Agent in Charge, Kenneth Cronin, U.S. Secret Service, Atlanta Field Office. “These types of cyber criminals use sophisticated hacking techniques to compromise computer systems and then utilize a global network of co-conspirators to withdraw millions of dollars from ATM machines from around the world. Our success in this case and other network intrusion investigations is a result of our close work with our domestic and international law enforcement partners.”
According to U.S Attorney Horn, the charges and other information presented in court: During November 2008, a team of hackers, including Estonian national Sergei Tšurikov and others, obtained unauthorized access into the computer network of RBS WorldPay, what was then the U.S. payment processing division of the Royal Bank of Scotland Group PLC, located in Atlanta, Georgia. The group used sophisticated hacking techniques to compromise the data encryption that was used then by RBS WorldPay to protect customer data on payroll debit cards. Payroll debit cards are used by various companies to pay their employees. By using a payroll debit card, employees are able to withdraw their regular salaries from an ATM.
Once the encryption on the card processing system was compromised, the hacking ring raised the account limits on compromised accounts to amounts exceeding $1,000,000. The hackers then provided a network of cashers, equipped with 44 counterfeit payroll debit cards, withdrew more than $9 million from over 2,100 ATMs in at least 280 cities worldwide, including cities in the United States, Russia, Ukraine, Estonia, Italy, Hong Kong, Japan and Canada. The $9 million loss occurred within a span of less than 12 hours. In addition, the hacking crew obtained access to files containing 45.5 million pre-paid payroll and gift card numbers.
The hackers then sought to destroy data stored on the card processing network in order to conceal their hacking activity. The cashers were allowed to keep 30 to 50 percent of the stolen funds, but transmitted the bulk of those funds back to Tšurikov and his co-defendants. Upon discovering the unauthorized activity, RBS WorldPay immediately reported the breach, and has substantially assisted in the investigation.
Throughout the duration of the cashout, Tšurikov and another hacker monitored the fraudulent ATM withdrawals in real-time from within the computer systems of RBS WorldPay.
Roman Seleznev, of Vladivostok, Russia, pleaded guilty before U.S. District Judge Steve C. Jones. Sentencing has not yet been scheduled.
To date, the U.S. Attorney’s Office for the Northern District of Georgia has charged 14 individuals involved in the hack and cashout, including Russian nationals Viktor Pleschuk, Evgeniy Anikin, and Roman Seleznev; Estonian nationals Sergei Tsurikov, Igor Grudijev, Ronald Tsoi, Eveilyn Tsoi, and Mikhail Jevgenov; Moldovan national Oleg Covelin; Ukranian nationals Vladimir Valeyrich Tailar and Evgeny Levitskyy; Nigerian national Ezenwa Chukukere; American national Sonya Martin; and Vladislav Horohorin, who is citizen of Russia, Israel, and Ukraine.
This case is being investigated by the Federal Bureau of Investigation and United States Secret Service.
Assistant U.S. Attorney Kamal Ghali is prosecuting the case. Assistance was provided by the U.S. Attorney’s Office for the Western District of Washington, the Justice Department’s Office of International Affairs, and the Criminal Division’s Computer Crime and Intellectual Property Section.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Inmate indicted for escaping from Atlanta’s Federal Penitentiary on three separate occasionsRead the Press Release
ATLANTA – Federal inmate Jaye L. Thomas has been indicted for escaping from the prison camp at the U.S. Penitentiary in Atlanta, Georgia, on three separate occasions in 2016.
“Thomas allegedly escaped from Atlanta’s federal prison multiple times in 2016,” said U.S. Attorney John Horn. “When inmates escape from custody, they threaten the safety of our communities nearby the prison and undermine our system of criminal justice.”
“The federal indictment of federal inmate Thomas once again clearly reflects that those inmates walking away or otherwise leaving the grounds of United States Penitentiary Atlanta property will be dealt with as escapees. The potential harm to the public as well as the breakdown of order that these individuals can cause these corrections facilities when they re-enter with contraband items that have included alcohol and cell/smart phones is significant and should not and will not be tolerated,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Attorney Horn, the charges, and other information presented in court: the U.S. Penitentiary in Atlanta (“USP Atlanta”) is a medium-security prison for male inmates operated by the Federal Bureau of Prisons. USP Atlanta also operates a satellite prison camp for minimum-security male inmates. In January 2015, Thomas was convicted of possessing cocaine with the intent to distribute it. From approximately January to December 2016, he was assigned to the USP Atlanta prison camp, with a scheduled release date of December 28, 2022.
The indictment alleges that Thomas escaped from USP Atlanta on three separate occasions in 2016 (March 22, April 4, and September 25, 2016). The investigation against Thomas originated when law enforcement officers reviewed photographs from a surveillance camera that allegedly showed Thomas in a wooded area outside of prison property. Subsequently, law enforcement officers obtained documentary evidence and eyewitness testimony to support the escape charges against Thomas.
Jaye L. Thomas, 36, of Dalton, Georgia, was indicted on August 1, 2017, on three counts of escaping from federal custody.
Members of the public are reminded that the indictments only contain charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation and Atlanta Police Department.
Assistant U.S. Attorneys Jeffrey W. Davis and Timothy H. Lee are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Two men sentenced for child pornography crimesRead the Press Release
ATLANTA - Brandon Otoupal and Franklin Lee Clark Gilmore have been sentenced to federal prison, in separate court proceedings, for child pornography offenses. Otoupal both produced child pornography and posted a video on a website. Gilmore collected a library of child pornography files and shared them on the Internet in order to access more child pornography.
“These two men took perverse pleasure in the sexual abuse of children,” said U.S. Attorney John Horn. “Otoupal went a step further and bullied a teenage girl into producing child pornography for his own enjoyment. These two cases show that the Internet remains a thriving marketplace for the worst victimization of our children, as well as our commitment to doing everything we can to stop it.”
“Child pornography production is, bluntly, recording the sexual exploitation of innocent children, and those who encourage its production are directly responsible for promoting and encouraging child sex abuse,” said HSI Atlanta Special Agent in Charge Nick S. Annan. “As this case shows, no matter where or how these criminals may seek out their illegal acts, ICE Homeland Security Investigations is committed to investigating and seeking prosecution of child exploitation cases as one the agency’s highest priorities.”
According to U.S. Attorney Horn, the charges and other information presented in court: In July 2015, special agents with Homeland Security Investigations received information that a person had posted on a foreign website a file of a young child being sexually abused by an adult. Based on further investigation, the agents determined that the video was uploaded to the website from a house in Carrollton. When special agents executed a federal search warrant on August 17, 2015, they found that Branden Otoupal not only possessed numerous images of child pornography, but he had also produced child pornography. Specifically, he used a cell phone app to coerce a teenage girl to produce child pornography of herself and send it to him for his own sexual enjoyment.
The charges and other information presented in court show that Franklin Lee Clark Gilmore had been downloading child pornography from the Internet beginning around June 2014. He collected files of very young girls being sexually abused on cell phones, tablets and computers. Eventually, to manage his collection, he transferred it to the cloud. He chatted with numerous men online where he gave them links to his collection, and they in turn gave him additional child pornography.
Brandon Otoupal, 27, of Carrollton, Georgia, was sentenced to 16 years in prison to be followed by 20 years of supervised release. Otoupal was convicted of these charges on April 11, 2017, after he pleaded guilty.
Franklin Lee Clark Gilmore, 26, of Cartersville, Georgia, was sentenced to 12 years, four months in prison to be followed by 15 years of supervised release. Gilmore was convicted of these charges on June 9, 2017, after he pleaded guilty. There is no parole in the federal system. Both Otoupal and Gilmore will be required to register as sex offenders upon their release from prison.
These two cases were investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Assistant U.S. Attorney Paul R. Jones prosecuted the cases.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Ringleader of crew that broke into gun stores and stole 340 guns sentenced to ten years in prisonRead the Press Release
ATLANTA - Devonnaire Coffey has been sentenced to ten years in federal prison. Coffey, often assisted by others he recruited, broke into 14 gun stores in Georgia, North Carolina, and South Carolina, and stole 340 guns. Coffey then sold the stolen firearms out of motel rooms to willing buyers.
“Coffey endangered the public by stealing firearms and selling them to whoever had the money to buy them,” said U.S. Attorney John Horn. “His return to gun stores he had already broken into shows a complete lack of fear and, importantly, that his desire for personal gain outweighed any concerns he may have had for the safety of citizens both in this community and elsewhere.”
“ATF’s central objective is ensuring the safety of our communities. In order to accomplish this mission, ATF will aggressively and acutely target individuals who seek to diminish the general welfare of our citizens through violence, narcotics sales and firearms trafficking. Criminals must understand there are serious repercussions for illegally obtaining, possessing and trafficking firearms,” said Assistant Special Agent in Charge John Schmidt, Atlanta Field Division.
According to U.S. Attorney Horn, the charges and other information presented in court: Coffey broke into 14 stores that sold firearms in Georgia, North Carolina, and South Carolina, and stole 340 guns. He also attempted to break into six other stores. Coffey and others then sold those stolen guns in various communities. The defendant planned these burglaries, recruited others to help him, and then sold the stolen guns from a motel room after the thefts. He used various methods of entry to include throwing rocks through windows and welding torches to burn through locks on doors.
Coffey burglarized some dealerships multiple times including one location in Elberton twice, one in Canton twice, and one in McDonough twice and attempted a third burglary at the same two dealerships in Canton and McDonough, but ultimately was unsuccessful.
Firearms stolen by Coffey have been discovered by law enforcement as far away as Chicago and Washington, D.C. Not all of them have been recovered. Firearms stolen by the defendant ended up in the hands of convicted felons, have been used in shootings, and carried by drug dealers.
Devonnaire Coffey, 26, of Augusta, Georgia, was convicted of conspiracy to steal firearms from licensed gun dealers, theft of firearms from licensed gun dealers, and possession and sale of stolen firearms after he pleaded guilty on May 18, 2017. He was sentenced to ten years in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $51,128.89.
This case was being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Henry County, Georgia Police Department, Rocky Mount, North Carolina Police Department, Charlotte-Mecklenburg, North Carolina Police Department, Holly Springs, Georgia Police Department, Rock Hill, South Carolina Police Department, and the ATF Regional Anti-Gang Enforcement (RAGE) Unit. RAGE is a joint gang/violent crime task force with members from ATF, North Augusta Department of Public Safety, Aiken County Sheriff’s Office, Aiken Department of Public Safety, Richmond County Sheriff’s Office and the South Carolina Law Enforcement Division.
Assistant U.S. Attorneys Jennifer Keen and Stephanie E. Gabay-Smith prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Sixteen U.S. Postal Service workers charged with accepting bribes to deliver cocaineRead the Press Release
ATLANTA – In three separate federal indictments unsealed on Tuesday August 29, 2017, 16 U.S. Postal Service (USPS) employees working in locations across the metro-Atlanta area have been charged with accepting bribes to deliver packages of kilogram-quantities of cocaine in a wide-reaching sting operation.
“Postal employees are entrusted to perform a vital service as they travel through our communities, often visiting our homes and interacting personally with our citizens,” said U.S. Attorney John Horn. “The defendants in this case allegedly sold that trust out to someone they knew to be a drug dealer, and simply for cash in their pockets they were willing to endanger themselves and the residents on their routes and bring harmful drugs into the community.”
“The allegations contained in these federal indictments are disturbing to say the least. The blatant abdication of the public trust through the criminal conduct of these sixteen U.S. Postal Service employees, absolutely stains the established trust of their peers and those that went before them at the U.S. Postal Service. While it is hoped that this extensive joint investigation and resulting federal prosecution will serve as a deterrent for others, the FBI makes it clear that public corruption remains our number one criminal program priority and, as such, we have dedicated significant resources toward the identification, investigation, and presentation for prosecution of any individuals involved in similar such conduct,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.
“The DeKalb County District Attorney's Office is equally committed to aggressively combating public corruption. This case highlights the importance of interagency cooperation to effectively identify, investigate, and prosecute those who abuse their positions of public trust regardless of geographical borders,” said DeKalb County District Attorney Sherry Boston.
“While the vast majority of U.S. Postal Service personnel are hard-working and trustworthy individuals who are dedicated to delivering mail and would never consider engaging in criminal behavior, these charges reflect the select few who decided to betray the trust. This type of behavior within the Postal Service is not tolerated and when employees engage in criminal behavior, the special agents of the U.S. Postal Service, Office of Inspector General (USPS OIG) vigorously investigate these matters, along with other federal and local law enforcement agencies, to hold accountable those employees who violate that public trust,” said Paul L. Bowman, USPS OIG Special Agent in Charge, Capital Metro Area Field Office.
According to U.S. Attorney Horn, the indictments, and other information presented in court: USPS employees allegedly accepted bribes from a person they believed was a drug trafficker using the U.S. mail to ship cocaine – multiple kilograms at a time – into the Atlanta area. The USPS employees are as follows:
-
Cydra Rochelle Alexander, 31, of Riverdale, Georgia, a letter carrier assigned to the Ralph McGill Carrier Annex and Central City Branch of the Atlanta Post Office.
-
Aurthamis O. Burch, a/k/a Tank, 46, of Snellville, Georgia, a letter carrier assigned to the Doraville Post Office.
-
Kawana Rashun Champion, 35, of Jonesboro, Georgia, a clerk assigned to the North Springs Branch of the Sandy Springs Post Office and Central City Branch of the Atlanta Post Office.
-
Eleanor Lolita Golden, a/k/a Eleanor Johnson, 54, of East Point, Georgia, a letter carrier assigned to the West End Branch of the Atlanta Post Office.
-
Tonie Harris, 54, of Decatur, Georgia, a letter carrier assigned to the Sandy Springs Post Office.
-
Leea Janel Holt, 38, of Atlanta, Georgia, a letter carrier assigned to the Old National Branch of the Riverdale Post Office.
-
Clifton Curtis Lee, a/k/a Cliff, 41, of Lithonia, Georgia, a letter carrier assigned to the Sandy Springs Post Office.
-
Shakeed Anilah Magee, 40, of College Park, Georgia, a letter carrier assigned to the West End Branch of the Atlanta Post Office.
-
Horace Manson, 40, of Roswell, Georgia, a letter carrier assigned to the West End Branch of the Atlanta Post Office.
-
Olivia Marita Moore, 25, of Atlanta, Georgia, a letter carrier assigned to the Old National Branch of the Riverdale Post Office.
-
Eddie Nash, 63, of Decatur, Georgia, a letter carrier assigned to the West End Branch of the Atlanta Post Office.
-
Jeffrey A. Pearson, 59, of Austell, Georgia, a letter carrier assigned to the Decatur Post Office.
-
Rodney Antwain Salter, 33, of Jonesboro, Georgia, a letter carrier assigned to the Martech Branch of the Atlanta Post Office.
-
Frank Webb, 40, of Lithonia, Georgia, a letter carrier assigned to the Central City Branch of the Atlanta Post Office.
-
Katrina Nicole Wilson, a/k/a Trina, 38, of Fairburn, Georgia, a letter carrier assigned to the West End Branch of the Atlanta Post Office.
-
Harvel Donta Young, a/k/a Dante, 39, of Atlanta, Georgia, a letter carrier assigned to the Westside Annex Branch of the Marietta Post Office.
In exchange for the bribe payments, these individuals allegedly provided special addresses that the drug trafficker could use to ship packages of cocaine. The defendants then intercepted the packages and delivered them to the drug trafficker. Unbeknownst to them, the drug trafficker was actually working with law enforcement and the packages they delivered contained fake drugs.
Some of the postal employees went on to recruit additional USPS employees to join the criminal scheme, and accepted additional money for drug packages delivered by their recruits.
Dexter Bernard Frazier, a/k/a Dec, 56, of Fairburn, Georgia, was also charged based on his role in introducing several of the defendants to the drug trafficker and coordinating logistics of the scheme in exchange for payments.
Alexander, Burch, Champion, Frazier, Golden, Harris, Holt, Lee, Magee, Manson, Moore, Nash, Salter, Webb, Wilson, and Young have been arrested and will be arraigned before U.S. Magistrate Judge Linda T. Walker.
Members of the public are reminded that the indictments only contain charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation, DeKalb County District Attorney’s Office, and U.S. Postal Service Office of Inspector General.
Assistant U.S. Attorneys Garrett L. Bradford and Jill E. Steinberg are prosecuting the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
-
Three sentenced for five million dollar tax fraudRead the Press Release
ATLANTA - Kim A. Earlycutt, Shannon A. King, and Marcia Farmer, have been sentenced for conspiring to submit false tax returns totaling more than $5 million over the course of four years.
“The defendants went to great lengths to steal tax money from the IRS, with the twist in this case that they used stolen identities of foreign nationals to seek phony refunds,” said U. S. Attorney John Horn. “It all comes back to basic theft to enrich themselves at the expense of the taxpayers.”
“Identity theft continues to victimize unknowing individuals as well as the Internal Revenue Service. If you steal someone’s identity and file false tax returns, you will be prosecuted,” said Acting Special Agent in Charge, James E. Dorsey, IRS Criminal Investigation. “These sentencings should serve as a clear message to the public, theft will cost you significant jail time.”
“This is a great example of a joint investigation in which the financial footprints of these defendants were uncovered to gather evidence to bring them to justice. The prison sentences sent a strong message that we will continue to aggressively investigate criminals that engage in fraudulent schemes,” said David M. McGinnis, U.S. Postal Inspector in Charge of the Charlotte Division. “Together we will continue to be vigilant in disrupting criminal organizations who illegally utilize the U.S. Postal Service.”
“The United States Secret Service will continue to collaborate with our law enforcement partners and prosecutors to ensure that nefarious individuals who violate their positions of trust to illegally enrich themselves are put behind bars,” said Kenneth Cronin, Special Agent in Charge of the U.S. Secret Service, Atlanta Field Office. “This sentencing should be a warning to other like-minded criminals and their conspirators that stealing from the American people will not go unpunished.”
According to U.S. Attorney Horn, the charges and other information presented in court: The three defendants obtained identity documents of foreign nationals and forged foreign identity documents in connection with their work at T&K Tax Services and More, which Earlycutt partially owned. Using these identity documents, the defendants submitted IRS W-7 forms to get individual taxpayer identification numbers (ITINs). The defendants then created false and fraudulent tax claim forms, specifically Forms 1040, or individual income tax returns, using these ITINs. Included with these Forms 1040 were falsified W-2 forms, which had fraudulent employer information, income, withholding amounts, and deduction amounts.
The defendants filed the fraudulent tax returns with the IRS, by mailing them and by using T&K’s electronic filing number. The tax returns all contained requests for refunds which were not actually due. The defendants enriched themselves by retaining a portion of the tax refunds that had been fraudulently obtained, including in some instances the entire refund. In all, they sought refunds in excess of $7 million and actually received over $5 million in fraudulent refunds. They used these fraudulent funds to pay personal expenses, including paying their personal automobile insurance. One defendant, Kim Earlycutt, used the fraudulent funds for gambling.
Kim A. Earlycutt, 54, of Covington, Georgia, was sentenced to nine years in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $5,222,634. Earlycutt was convicted on these charges on June 15, 2017, after she pleaded guilty.
Shannon A. King, 37, of Lithonia, Georgia, was sentenced to four years, six months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $2,596,169. King was convicted on these charges on June 15, 2017, after he pleaded guilty.
Marcia Farmer, 51, of Snellville, Georgia, was sentenced to one year, six months in prison to be followed by nine months of home confinement, and three years of supervised release. She was ordered to pay restitution in the amount of $3,370,811. Farmer was convicted on these charges on October 28, 2016, after she pleaded guilty.
All three were sentenced by U.S. District Judge Leigh Martin May.
This case was investigated by the Internal Revenue Service Criminal Investigation, the U.S. Postal Inspection Service, and the U.S. Secret Service.
Assistant U.S. Attorney Christopher J. Huber prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Serial robber of CVS Pharmacies sentencedRead the Press Release
ATLANTA - Kelvonne D. Charleston, a/k/a Kelvonne Don Charleston, a/k/a Kelvonne Dontwelle Charleston, has been sentenced after previously pleading guilty to committing at least five robberies at metro-Atlanta drug stores, and for assaulting FBI agents.
“The defendant was a violent criminal who terrorized ordinary citizens,” said U. S. Attorney John Horn. “Once he was caught, Charleston thought he could intimidate the FBI and police by driving his car toward them. He hit several cars, injured several law enforcement officers and caused significant damage.”
“The threat of bodily harm, even death, that this defendant posed to every day citizens and law enforcement officials was very real,” said David J. LeValley, Special Agent in Charge of the FBI Atlanta Field Office. “Every victim he confronted felt the potential threat of a real gun. It is also clear that he had a complete disregard for human life in his attempt to escape arrest. Thanks to the brave response of FBI agents and police, he poses no further threat to anyone.”
“Getting violent criminals off our streets is our priority for our department,” said Atlanta Police Chief Erika Shields. “We’re grateful to the U.S. Attorney’s Office for helping make sure our work on the street is followed up by serious prison time for these serious crimes.”
According to U.S. Attorney Horn, the charges and other information presented in court: From late 2013 through May 4, 2015, multiple CVS Pharmacies and other commercial businesses in the metropolitan Atlanta, Georgia, area were robbed by a man using the same method of operation. The man wore a mask or bandana and used what appeared to be a firearm to rob the stores. FBI and police identified a suspect, and found that the same individual was repeatedly showing up in the area of the robberies -- Kelvonne Charleston.
On May 4, 2015, the FBI and police moved in to arrest Charleston as he attempted to enter and rob a CVS pharmacy in Cumming, Georgia. When the agents identified themselves, Charleston turned toward the agents with what they believed was a real firearm. He then ran from them, got in his vehicle, and drove toward two FBI agents with the pistol in his hand. To stop him, the agents fired in self-defense at Charleston and wounded him. However, Charleston still managed to drive past these agents and only came to a stop after he struck two separate FBI vehicles and wrecked his own car.
Despite being wounded, Charleston fought with the agents as they removed him from his car and then discovered the replica of a real firearm. The agents administered lifesaving first aid and paramedics took Charleston to the hospital where he later confessed to robbing several CVS stores.
Kelvonne D. Charleston, a/k/a Kelvonne Don Charleston, a/k/a Kelvonne Dontwelle Charleston, 38, of Lithia Springs, Georgia, was sentenced by U.S. District Court Judge Thomas W. Thrash to 15 years, eight months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $36,413.15. He was convicted of these charges on June 1, 2017, after he pleaded guilty.
This case was investigated by the Federal Bureau of Investigation, Atlanta Police Department, Powder Springs Police Department, and Gwinnett County Sheriff’s Office.
Assistant U.S. Attorneys Angela Marie Munson and Joseph A. Plummer prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Four indicted for distributing heroin in North GeorgiaRead the Press Release
GAINESVILLE, Ga. - Michelle Dawn Dorsey, Nigel Alan Waddell, and Tyler Josiah Matthews have been arraigned on federal charges of trafficking in heroin. A fourth defendant, Derrik Omar Frazier, was arraigned on July 20, 2017.
“The indictment brought against these defendants is the result of a two-year, joint federal-state investigation by law enforcement to take down a significant heroin distribution network operating between communities in North Georgia and the Atlanta area,” said U. S. Attorney John Horn. “Heroin and fentanyl are poisoning our communities, and the overdoses and deaths are climbing in truly alarming numbers. Our office, along with state and local law enforcement agencies, are taking a strong stance against those who deal heroin and opiates.”
According to U.S. Attorney Horn, the charges, and other information presented in court: Dorsey, Waddell, Matthews and Frazier allegedly conspired to distribute heroin in North Georgia. Dorsey and Waddell sold quantities of heroin in White and Habersham Counties. They obtained the heroin primarily from Frazier. Matthews worked for Dorsey and was responsible for transporting heroin from Frazier’s residence in Stone Mountain, Georgia, to Dorsey’s residence in Demorest, also in Georgia.
Two heroin users allegedly overdosed on heroin they obtained from Dorsey, but they were revived after being administered Naloxone by emergency medical personnel in White County in one instance and Habersham County in the other. Naloxone is used to treat narcotic overdoses as it can reverse the effects of an overdose in most cases. Both overdose victims likely would have died, but for the life saving measures taken by medical professionals.
The overdose victims in this case were transported to medical facilities by friends who were also in possession of heroin. However, those individuals have not been charged with any offense. Georgia’s 911 Medical Amnesty Law protects individuals from arrest, prosecution, and conviction of certain drug offenses if the evidence of their drug crime results from the individuals seeking medical assistance for someone thought to be suffering from a drug overdose. The defendants named in this indictment were not present at the time of the overdoses nor did they seek medical assistance for the victims. In keeping with the spirit of Georgia’s 911 Medical Amnesty Law, the U.S. Attorney’s Office and Appalachian Regional Drug Enforcement Office (ARDEO) want the public to trust that those seeking to provide aid to overdose victims will not be targeted for investigation and/or prosecution.
On July 20, 2017, in conjunction with Frazier’s arrest at his residence in Stone Mountain, agents with the ARDEO and the Georgia Bureau of Investigation West Metro Regional Drug Enforcement Office executed a search warrant. The agents seized one ounce of heroin, one ounce of methamphetamine, one ounce of cocaine, and a cache of firearms.
Michelle Dawn Dorsey, 45, of Demorest, Georgia, Nigel Alan Waddell, 28, of Cornelia, Georgia, and Tyler Josiah Matthews, 26, of Cleveland, Georgia, were arraigned before U.S. Magistrate Judge J. Clay Fuller. Dorsey, Waddell, Matthews and Derrik Omar Frazier, 42, of Stone Mountain, Georgia, were indicted by a federal grand jury on July 12, 2017.
Members of the public are reminded that the indictment only contains charges. Each defendant is presumed innocent of the charges and it will be the government’s burden to prove each defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Appalachian Regional Drug Enforcement Office. The Appalachian Regional Drug Enforcement Office is a multi-agency unit that consists of the following Sheriff’s Offices: White County, Lumpkin County, Towns County, Banks County, Habersham County, Stephens County, Rabun County and Franklin County, along with the Cleveland Police Department, Lavonia Police Department, the Georgia National Guard Counter Drug Task Force, the Department of Public Safety,, and the Georgia Bureau of Investigation.
Assistant U.S. Attorneys William L. McKinnon, Jr. and Nicholas Hartigan are prosecuting the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former political candidate sentenced to prison for stealing federal fundsRead the Press Release
ATLANTA – Kevin Edwards, a former political candidate and nightclub owner, has been sentenced to two years, three months in federal prison for stealing federal funds administered by the Atlanta Workforce Development Agency (AWDA).
“Edwards stole over $600,000 in grant funds intended to train unemployed Atlanta citizens,” said U. S. Attorney John Horn. “He chose to steal money rather than training employees for long term employment. The federal government lost valuable grant funds, and those seeking job training were cheated out of an opportunity to obtain job skills.”
“The U.S. Department of Labor entrusted Edwards to provide training services to those in Atlanta affected by unemployment. Rather than provide valuable on-the-job training, Edwards victimized workers by assigning them odd jobs such as cleaning, and paid them far less than he reported. We will continue to work with our law enforcement partners to investigate those who steal training grant money from Department of Labor programs,” said Rafiq Ahmad, Special Agent in Charge, Atlanta Region, U.S. Department of Labor, Office of Inspector General.
According to U.S. Attorney Horn, the indictment, and other information presented in court: AWDA’s On-the-Job Training Program was funded with grants from the U.S. Department of Labor. The purpose of the OJT program is to increase employment by encouraging companies to hire employees that need additional job skills that the employer is willing to provide in exchange for wage reimbursement. The ultimate goal of the OJT program is for the employer to hire the participant at the end of the OJT contract period.
Edwards, a former budget analyst with the City of Atlanta, political candidate and nightclub owner, owned or controlled three companies in Atlanta between 2010 and 2012. During this three-year period, the three companies owned or controlled by Edwards received approximately $649,000 in OJT funds from the AWDA.
He also falsely represented to AWDA that his companies, Cronus Development, LLC (Cronus), CGE Construction and Consulting, Inc. (CGE), and The Elite Academy and Learning Center (Elite), would hire and train employees with the goal of full-time employment. Instead, Edwards failed to provide training programs, submitted forged and fraudulent wage reimbursement requests for employees that never worked for his companies, and paid workers only a fraction of the salary reported to AWDA. More specifically, instead of receiving training, OJT employees for CGE and Cronus reported that they did odd jobs, including cleaning up properties, yard work and working at one of Edwards’ nightclubs. Despite these shortcomings, Edwards received full payments from AWDA through the OJT program.
Kevin Edwards, 46, of Atlanta, Georgia was sentenced by U.S. District Court Judge Steven C. Jones to two years, three months in federal prison and three years of supervised release and ordered to pay restitution in the amount of $489,710.43. On December 13, 2016, Edwards pleaded guilty to one count of theft of government funds.
This case was investigated by the U.S. Department of Labor, Office of Inspector General.
Assistant U.S. Attorney Jeffrey A. Brown prosecuted the criminal case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Senior MARTA executive charged with a false invoice scam causing MARTA to pay $500,000 for work never performedRead the Press Release
ATLANTA - Joseph J. Erves, MARTA’s former Senior Director of Operations, has been charged with conducting a false invoice scheme that resulted in MARTA paying more than $500,000 for maintenance work that was never performed and for funneling most of the money back into his personal bank accounts.
“Erves was entrusted to safeguard the taxpayer funds used to run our public transportation authority, and instead he is charged with stealing a half million dollars to buy a Porsche and other high-end purchases. This is a classic case where a public official’s short-term gain in stealing from taxpayers comes crashing down and ends with criminal charges,” said U.S. Attorney John A. Horn.
“The federal investigation and resulting federal charges against Mr. Erves will hopefully send a message to others that such ill-conceived schemes to redirect corporate or public funds to their own accounts is a criminal act with tough consequences. The FBI would like to thank the MARTA Police and their investigators for their invaluable assistance in getting this matter advanced for prosecution,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Attorney Horn, the charges, and other information presented in court: the Metropolitan Atlanta Rapid Transit Authority (“MARTA”) is the principal public transportation operator in the Atlanta metropolitan area, providing fixed rail and bus service to more than 500,000 passengers per weekday. Formed in 1965, MARTA is a multi-county governmental agency with a 2016 annual budget of more than $880 million.
From 1993 to 2017, Erves worked for MARTA, ultimately serving as its Senior Director of Operations. In that position, Erves oversaw the maintenance of all of MARTA’s buses and rail cars and had the authority to approve payments up to $10,000 to vendors for work performed on behalf of MARTA.
Beginning in or about 2010, Erves retained three different vendors purportedly to perform maintenance projects for MARTA, including repairing brake testing equipment and fixing various MARTA tools and equipment. From approximately June 2010 to December 2016, Erves had fake invoices prepared on behalf of the three vendors for more than 40 maintenance projects for which no work was performed.
Erves then used the false invoices as bases to authorize payments to the three vendors. In many cases, Erves personally approved payments to the vendors knowing that the vendors had not performed any work for MARTA.
After being paid, the three vendors funneled most of the money received from MARTA into Erves’s personal bank accounts. Subsequently, Erves used the money deposited into his accounts to pay personal expenses, such as multiple purchases at high-end department stores and the purchase of a Porsche 911. Based on Erves’s authority and representations, MARTA paid the three vendors more than $500,000 for maintenance projects where no worked was actually performed.
Erves, 52, of Lithonia, Georgia, has been charged in a criminal information with one count of Federal Program Theft. Erves is expected to plead guilty to the charge shortly after arraignment.
This case is being investigated by the Federal Bureau of Investigation and the MARTA Police Department.
Assistant U.S. Attorneys Jeffrey W. Davis and Alison Prout are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former CEO of Summit Wealth Management sentenced to prison for orchestrating a multi-million dollar fraud schemeRead the Press Release
ATLANTA – Angelo Alleca, the former CEO of Atlanta, Georgia, based Summit Wealth Management, has been sentenced to eight years in federal prison for a multistate investment fraud scheme. The scheme victimized over 300 people who lost more than $24 million dollars.
“Alleca defrauded victims from across the country and, like many investment fraudsters, he preyed on seniors, retirees, and others simply looking for safe and secure returns,” said U.S. Attorney John Horn said. “Citizens should take careful steps to research and scrutinize any investment manager to whom they entrust their hard-earned money, and remember that if something does not seem right, they should ask questions.”
“There is a very real victimization felt by people who have entrusted their financial futures to the hands of someone who would uncaringly violate that trust,” said David J. LeValley, Special Agent in Charge of the FBI Atlanta Field Office. “In some cases people lose their entire life savings. Though they may never fully recover financially, hopefully the sentences handed down in this case and the restitution imposed will give the victims some solace for their losses.”
According to U.S. Attorney Horn, the indictment, and other information presented in court: From on or about 2004 until 2012, Alleca acted as the President and Chief Executive Officer of Summit Wealth Management, an investment adviser headquartered in Atlanta. During that time, Alleca started several funds and falsely misrepresented that money would be invested in hedge funds and debt securities and managed by professional investment managers.
Instead of investing the money as advertised, Alleca lost a substantial portion of the funds through securities trading. Additionally, he improperly used the funds to operate Summit Wealth Management, make interest payments and redemptions to earlier investors, and to pay personal expenses. During the course of the scheme, fraudulent account statements were mailed to investors showing gains, when there was no money in the funds.
In 2007, Mark Morrow, a co-defendant in the case and Alleca’s former business partner, established Detroit Memorial Partners LLC, which sold promissory notes to acquire and manage cemeteries in Michigan.
Between 2007 and 2012, Morrow and Alleca marketed promissory notes in Detroit Memorial Partners to Summit Wealth clients in Atlanta and throughout the country. Detroit Memorial Partners’ offering documents contained material misrepresentations, including that the notes would be secured by real property when in fact no security interest was ever recorded with respect to the notes. Moreover, shortly after receiving the note proceeds, Alleca and Morrow diverted funds for improper purposes including, making interest payments and redemptions to investors in Summit Wealth Management funds and personal expenses. Because of their fraud schemes, over 300 investors lost over $24 million dollars invested in the Summit Funds and Detroit Memorial Partners LLC.
Angelo Alleca, 47, of Buffalo, New York, was sentenced by U.S. District Court Judge Leigh Martin May to eight years in federal prison and three years of supervised release and ordered to pay $24,382,487.66, in restitution. On May 26, 2016, Alleca pleaded guilty to one count of conspiracy to commit wire and mail fraud and one count of conspiracy to commit wire fraud.
On April 27, 2017, Mark Morrow, 56, of Cincinnati, Ohio, pleaded guilty to one count of conspiracy to commit wire fraud. His sentencing is scheduled for October 18, 2017 at 9:30 am, before U.S. District Court Judge Leigh Martin May.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Jeffrey Brown prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Canadian man charged with flying to Atlanta in an attempt to have sex with 13-year-old Marietta girl he met on the InternetRead the Press Release
ATLANTA - Yves Joseph Legault has been arraigned on federal charges of using the internet to entice a child for sexual activity and enticing the 13-year-old to engage in sexually explicit conduct over the internet. Legault traveled to Atlanta from his home in Canada with the alleged expectation of having sex with a minor.
“Legault is accused of communicating with a young girl on the internet for the purpose of engaging in illegal sexual activity with her,” said U. S. Attorney John Horn. “The FBI successfully intercepted Legault after he flew into the United States and before he could carry out his plan. Cases like this one demonstrate the continued importance for parents to engage with their kids about their activities on the Internet including the app’s they are using to chat, and the people with whom they are chatting.”
“The FBI stands ready to aggressively pursue those who would prey on our nation’s children. The FBI’s Violent Crimes Against Children (VCAC) program, which consists of a network of specially trained FBI agents working with various local, state, federal, and even international partners, collectively carries out the important mission of protecting our children from those who would harm them. The investigation, arrest, and resulting federal charges involving Mr. Legault, a Canadian national, is an example of the great partnership and responsiveness of Canadian law enforcement authorities in helping the FBI carry out this mission,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Attorney Horn, the charges, and other information presented in court: Beginning in approximately July of this year, Legault met a 13-year-old girl on Omegle, a free online and anonymous text and video chat tool. After moving their communications to another site, the defendant allegedly asked the teen to perform sexual acts on live video-streaming for him. Legault eventually arranged to travel from Canada to Atlanta, Georgia, in order to have sex with the girl.
On August 4, 2017, after crossing from Canada into the United States at the Buffalo-Niagra Falls Port of Entry, Legault’s flight from Buffalo, New York, was cancelled, forcing him to reschedule his trip to Atlanta. On August 11, 2017, Legault was arrested after flying from Toronto, Canada into Atlanta’s Hartsfield Jackson Airport allegedly for the purpose of engaging in sex with the teen. The 13-year-old girl’s mother had alerted agents with the FBI to the relationship after she intercepted a package Legault had sent her daughter from Canada.
Yves Joseph Legault, 53, of Ontario, Canada, was indicted by a federal grand jury on August 15, 2017, and was arraigned before U.S. Magistrate Judge Janet F. King.
Members of the public are reminded that the indictment and criminal complaint only contain charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation. The FBI is extremely grateful for the help of our international partners in bringing this indictment to fruition: the Ontario Provincial Police, York Regional Police, and Canada Border Services Agency.
Assistant U.S. Attorney Skye Davis is prosecuting the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is https://www.justice.gov/usao-ndga.
Atlanta man who engaged in a public shootout sentenced to Federal Prison for unlawfully possessing a firearmRead the Press Release
ATLANTA - Cory Jones, a/k/a Corey Jones has been sentenced to four years, three months in federal prison for being a felon in possession of a firearm. The defendant attempted to rob a citizen and afterward exchanged gunfire with security guards and another citizen at that location.
“As a convicted felon, Jones should never have been in possession of the gun he used to rob and fire at the victim,” said U.S. Attorney John A. Horn. “This defendant jeopardized the lives of so many others and is a perfect example of why the aggressive enforcement of federal firearms laws remains a critical priority for this office and our law enforcement partners.”
“Getting guns out of the hands of violent criminals has been one of my top priorities,” said Atlanta Police Chief Erika Shields. “I’m grateful to U.S. Attorney Horn for his support of our efforts and for prosecuting someone who has very clearly posed a threat to public safety.”
According to U.S. Attorney Horn, the charges and other information presented in court: On March 15, 2016, Jones approached a car in the parking lot of the Blue Ivory Restaurant and Lounge in Atlanta, Georgia. After speaking with the driver through an open passenger window, Jones pulled out a firearm and demanded the driver’s watch. Although the victim handed over his watch, Jones fired his weapon at the victim, but fortunately did not strike the victim. The victim then quickly accelerated out of the parking lot. Jones continued firing at the victim’s car as it pulled away, and the victim stopped, returning fire with his own weapon. A security guard that witnessed the unfolding scene fired at Jones as well.
Jones fled the parking lot on foot with two security guards in pursuit. The security guards caught him as he attempted to hide in bushes on a nearby exit ramp for I-20, with his firearm lying at his feet. Shortly thereafter, Atlanta Police Department (APD) officers took into custody without further incident. The officers checked ’s criminal history, and learned that he was a convicted felon, and thus prohibited from possessing firearms.
Cory Jones, a/k/a Corey Jones, 29, of Atlanta, Georgia, has been sentenced to four years, three months in prison to be followed by three years of supervised release. Jones was convicted on these charges on May 15, 2017, after he pleaded guilty.
This case was investigated by the Atlanta Police Department.
Assistant U.S. Attorneys Bret R. Hobson and Mary Webb prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former church administrator pleads guilty to embezzling church fundsRead the Press Release
ATLANTA – Sherie Britton, a former church administrator, has pleaded guilty to embezzling over $315,000 from a church in Clayton County, Georgia.
“Britton took advantage of her access to the congregation’s donations to fund her extravagant personal expenses,” said U. S. Attorney John Horn. “For years she siphoned money away from the church’s charitable work and spent it on everything from clothing to vacations for herself. Stealing from your employer is always a crime, but it is more reprehensible when the money consists of donations for charitable purposes.”
According to U.S. Attorney Horn, the charges and other information presented in court: Britton was the church administrator for a church located in Rex, Georgia. As church administrator, Britton managed a Paypal account that received donations from members of the congregation. These funds were intended to be used for the needs of the church, for civic events, and to help poor members of the community.
Beginning in 2012 and continuing through February 2017, Britton stole over $257,000 in donations from the church’s Paypal account and over $58,000 from the church’s payroll account. Britton then spent the stolen church funds on a variety of personal expenses, including on vacations, clothing, restaurants, and home furnishings. On February 3, 2017, FBI agents interviewed Britton about the transfer of church funds to her personal Paypal account. During that interview, Britton falsely told the agents that she had the permission of the church to transfer these funds and that they were being spent on church-related events.
Sentencing for Sherie Britton, 44, of McDonough, Georgia, is scheduled for November 7, 2017, at 2:30 p.m., before U.S. District Judge Eleanor L. Ross.
This case is being investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Thomas J. Krepp is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Convenience store owners sentenced for food stamp fraud and identity theftRead the Press Release
ATLANTA – Jonathan and Stephanie Dupiton have been sentenced for using stolen identities to steal over $395,000 from the U.S. Department of Agriculture’s Supplemental Nutrition Assistance Program (SNAP). The defendants illegally obtained SNAP benefits for themselves, and then cashed them at stores they owned in several Georgia communities.
“These defendants subverted the SNAP program to line their own pockets and also used hundreds of stolen identities to commit their crimes,” said U.S. Attorney John Horn. “They used the SNAP system as an ATM for their personal gain, diverting critical benefits that help those who need assistance in our communities.”
“The United States Department of Agriculture, Office of Inspector General- Investigations, actively investigates allegations of Supplemental Nutritional Assistance Program (SNAP) fraud. These defendants stole unsuspecting people’s identities, used those identities to fraudulently acquire EBT cards, and misused thousands of dollars worth of SNAP benefits to enrich themselves at the expense of American taxpayers. Collectively, this type of fraudulent activity undermines this vital program by misdirecting millions of dollars of taxpayer funds from the purposes they were intended,” said Karen Citizen-Wilcox, Special Agent-in-Charge, USDA-OIG. “We would like to thank U.S. Attorney’s Office for aggressively prosecuting perpetrators of fraud and sending a strong message that illegally profiting by defrauding USDA programs will not be tolerated.”
“This investigation was a great example of partnership and cooperation between our Department and federal authorities,” said Georgia Department of Human Services Commissioner Robyn A. Crittenden. “DHS has zero tolerance for fraud, waste and abuse in the programs it administers. After internal efforts to detect fraud, DHS was able to work with the U.S. District Attorney’s Office in bringing these individuals to justice. Georgia’s most vulnerable citizens need these valuable resources, and we are committed to ensuring the integrity of SNAP in Georgia.”
According to U.S. Attorney Horn, the charges and other information presented in court: From July 2014 through October 2015, Jonathan and Stephanie Dupiton owned and operated two convenience stores in Cobb County, Georgia; J. Good Groceries in Mableton, and Stephanie’s Groceries in Austell. The USDA’s Food and Nutrition Service manages and funds SNAP, formerly known as the Food Stamp Program, with the purpose of alleviating hunger and malnutrition among low-income families. The Georgia Department of Human Services (DHS) administers the SNAP program.
The defendants used stolen identities to apply for SNAP benefits instead of accepting SNAP benefits from qualified recipients to purchase food. These SNAP benefits were loaded on EBT cards, which are similar to debit cards. The defendants directed DHS to mail hundreds of EBT cards to addresses they controlled. The Dupitons then collected and swiped the fraudulent SNAP cards at their convenience stores. Over $800,000 in SNAP payments were deposited in the defendants’ bank accounts. DHS and USDA were able to link $395,000 of those funds to 321 fraudulent SNAP accounts.
Jonathan Dupiton, 28, of Atlanta, Georgia, was sentenced to three years, nine months in prison, and Stephanie Dupiton, 24, also of Atlanta, Georgia, was sentenced to six months in prison. Both defendants were also sentenced to three years of supervised release, a special assessment of $100, and ordered to pay $395,388.01 in restitution. Both defendants were convicted of conspiracy to commit wire and mail fraud in April 2017, after pleading guilty to these charges. Jonathan Dupiton was also convicted of aggravated identity theft, which carries a mandatory two-year consecutive sentence.
The U.S. Department of Agriculture, Office of Inspector General and the Georgia Department of Human Services investigated this case.
Assistant U.S. Attorney Jeffrey Brown prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
Atlanta Pain Clinic and its owner agree to pay $250,000 to resolve allegations that they violated the False Claims ActRead the Press Release
ATLANTA – Atlanta Medical Clinic (“AMC”), which is an Atlanta-based pain management clinic, and Dr. Timothy Dembowski (AMC’s owner), have agreed to pay the United States $250,000 to resolve allegations that they violated Medicare rules and the False Claims Act (“FCA”) by billing the Government for: (1) services performed by a physician suspended from the Medicare program, and (2) the administration of foreign, non-FDA approved drugs, which are not eligible for reimbursement under the Medicare program.
“To maximize their profits, AMC and Dr. Dembowski violated Medicare program rules, and then exacerbated their misconduct by submitting false claims to the Government,” said U.S. Attorney John Horn. “Pursuing this investigation and securing this settlement highlights our continued diligence in combating waste, fraud and abuse with respect to federal health care programs.”
“This monetary resolution to allegations that violate the False Claims Act hopefully sends a message to health care providers that we are determined to root out any attempt to take advantage of our federal health care programs,” said David LeValley, Special Agent in Charge of the FBI’s Atlanta Field Office. “Healthcare providers like Dr. Dembowski and AMC need to think twice before they so willfully, and illegally try to maximize their profits.”
“When physicians and health care companies provide patients with drugs not approved by the FDA and bill for services provided by those suspended from the Medicare program, they violate the basic trust that is extended to healthcare professionals,” said Special Agent in Charge Derrick L. Jackson of the HHS-OIG’s Atlanta Region. “Our agents continue to work with the Department of Justice to root out such fraud schemes, which undermine the public’s confidence in, and the financial well-being of, federal health care programs.”
A joint investigation conducted by the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Department of Health and Human Services - Office of the Inspector General, and the Federal Bureau of Investigation revealed evidence suggesting that AMC and Dr. Dembowski violated the FCA through two separate schemes involving the submission of fraudulent Medicare claims to the Government.
First, AMC and Dr. Dembowski claimed and received payment for medical services rendered by a physician that worked at AMC (“Physician 1”). However, these claims were fraudulent as Physician 1 previously was suspended from the Medicare program in June 2013 for making false statements and omissions regarding his criminal history. Due to his suspension, no services rendered by Physician 1 were eligible for Medicare reimbursement. Both AMC and Dr. Dembowski were aware of Physician 1’s suspension, and that he was thus ineligible to provide services to Medicare patients.
Nevertheless, AMC and Dr. Dembowski circumvented Physician 1’s Medicare suspension and received Medicare reimbursements for Physician 1’s services, by falsely and fraudulently describing – in claims submitted to the Government – services that had been performed by Physician 1 as services performed by a different AMC physician (“Physician 2”) that was authorized to participate in the Medicare program.
Second, AMC and Dr. Dembowski violated the FCA by: (1) obtaining a foreign, non-FDA approved knee treatment drug – i.e, Orthovisc– from a firm in Canada; (2) utilizing such drug on Medicare patients; and then (3) seeking and receiving reimbursement from Medicare.
However, Medicare does not cover the costs of foreign, non-FDA approved drugs, and AMC and Dr. Dembowski never informed Medicare that the invoices involved the administration of foreign, non-FDA approved drugs.
The claims asserted against AMC and Dr. Dembowski are allegations only, and there has been no determination of liability.
This matter was handled by Assistant U.S. Attorney Paris A. Wynn.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
Two indicted in nationwide unclaimed property fraud schemeRead the Press Release
ATLANTA – Allen J. Pendergrass and Terrell McQueen have been arraigned on charges of orchestrating a nationwide unclaimed property fraud scheme. They provided asset recovery services for clients, claiming they would recover unclaimed money and assets held by local and state governments for a fee. During that process, they allegedly forged documents, claiming thousands of dollars due to citizens, which they placed into accounts they controlled, never distributing the money owed.
“These defendants are charged with forging power of attorney forms to steal over $100,000 owed to local businesses and residents,” said U. S. Attorney John Horn. “Citizens should remain vigilant in guarding their personal information as thieves continue to find new and creative ways to use it to perpetuate fraud schemes.”
“The defendants stole individual's identities and received money that was not rightfully theirs,” said James Dorsey, Acting Special Agent in Charge, IRS Criminal Investigation. “The IRS will continue to investigate and disrupt these complex financial schemes holding those accountable for their wrongdoing.”
“This investigation involved the meticulous gathering of hard evidence which uncovered a significant financial fraud and identity theft scheme,” said David M. McGinnis, Inspector in Charge, Charlotte Division. “Postal Inspectors will vigorously pursue and bring to justice anyone who commits a crime by utilizing the US Mail system.”
According to U.S. Attorney Horn, the indictment, and other information presented in court: From on or about 2004 until 2014, Pendergrass owned and operated Guishard, Wilburn & Shorts, LLC a company based on College Park, Georgia, that purportedly provided asset recovery services, including recovering unclaimed money and assets held by local and state governments for a fee. During that time, Pendergrass also owned or controlled other companies in Georgia that purported to provide the same services, including Asset Financial Recovery, Inc., Recovery Capital, Attorney Recovery System, National Asset Recovery Agency, Inc., Beacon Asset Recovery Agency, LLC, National Unclaimed Funds, Inc. and Service Pros, Inc.
In 2012, Pendergrass started Asset Financial Recovery, Inc., and was listed as the company’s chief executive officer. McQueen was listed as the chief financial officer. In 2013, Pendergrass and McQueen mailed forged power of attorney forms to the City of Atlanta and fraudulently claimed over $100,000 owed to local businesses and residents. These forms included forged signatures. Pendergrass and McQueen deposited stolen funds into bank accounts they controlled and did not provide the funds to rightful owners. Pendergrass, McQueen, and companies they controlled, perpetuated this fraud scheme across the country.
Allen J. Pendergrass, 60, of Fayetteville, Georgia, and Terrell McQueen, 37, of Fort Worth, Texas, were indicted on June 27, 2017.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the Internal Revenue Service Criminal Investigation and the United States Postal Inspection Service.
Assistant U.S. Attorney Jeffrey Brown is prosecuting the case.
In that this remains an ongoing investigation, anyone with information regarding this matter should contact the United States Postal Inspection Service at 877-876-2455.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Naturalized Citizen found guilty of Immigration FraudRead the Press Release
ATLANTA –Olu Kanni Sanyaolu, a/k/a Kunle Sanya Olukanni, has been convicted by a jury for naturalization fraud. The jury found that Sanyaolu, a naturalized citizen, fraudulently concealed when he applied for U.S. citizenship that an immigration judge had previously ordered him deported from the United States, which is a fact that made him ineligible to apply for citizenship. Because of this conviction, Sanyaolu will automatically lose his citizenship status.
“When someone engages in fraud and presents false information to become a naturalized citizen, it compromises the integrity and security of the naturalization process,” said U.S. Attorney John A. Horn. “The jury found the defendant completely subverted the process that allows immigrants to become citizens.”
“Identity fraud by those seeking to enter the United States poses a serious potential threat to national security and is one of the most important investigative focuses of Homeland Security Investigations,” said Nick S. Annan, special agent in charge of ICE Homeland Security Investigations Atlanta. “HSI is firmly committed to stopping criminals who seek to exploit our nation’s welcoming policy toward legal immigrants by engaging in fraud or deceit, and this case highlights the serious consequences awaiting anyone considering an attempt to cheat the system.”
According to U.S. Attorney Horn, the charges and other information presented in court: In April 2009, Olu Kanni Sanyaolu filed an application for naturalization with U.S. immigration officials. To finalize the application, an immigration officer interviewed Sanyaolu on July 20, 2009. In the interview, Sanyaolu stated under oath that he had never used another identity, and that he had never previously been ordered deported.
Several years later, immigration officials discovered through a fingerprint match that Sanyaolu was actually Kunle Sanya Olukanni. The evidence presented at trial revealed that before the defendant applied to become a naturalized citizen, he had unsuccessfully applied for asylum and permanent resident status using the name Kunle Olukanni, and had been ordered deported from the U.S. in 1998.The defendant then fraudulently assumed a new identity, using the name Olu Kanni Sanyaolu, and successfully applied for political asylum, claiming to be a member of the Nigerian Air Force who was persecuted and tortured after a coup. Four years later, in 2009, the defendant applied to become a naturalized U.S. citizen. He then fraudulently concealed he had previously used a different name and had been ordered deported, a fact that made him ineligible to apply for citizenship.
Olu Kanni Sanyaolu, a/k/a Kunle Sanya Olukanni, 54, of Lawrenceville, Georgia, was convicted on Thursday July 20, 2017. Sentencing is scheduled for October 5, 2017, at 9:30 a.m. before U.S. District Judge William S. Duffey, Jr.
This case is being investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Assistant U.S. Attorney Kelly K. Connors is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Ukrainian “Casher” Sentenced for Role in Worldpay Hacking SchemeRead the Press Release
ATLANTA- Evgeny Tarasovich Levitskyy, a/k/a Vinchenco, a/k/a Vinch, a/k/a M.U.R.D.E.R.E.R, has been sentenced to 46 months in federal prison for conspiracy to commit bank fraud for his role as a “casher” (one who withdraws cash using stolen bank account information) in the 2008 hack of RBS WorldPay.
“The 2008 hack of RBS WorldPay was one of the world’s most sophisticated hacking and cashing schemes,” said U. S. Attorney John Horn. “The team of hackers not only stole financial data from an American payment processor’s private servers, they were able to work in concert with a team of cashers stationed around the world. The cybercriminals stole over $9 million dollars in 12 hours from 2100 ATMs worldwide.”
David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office, stated: “Cyber crime and computer intrusions are no longer executed by lone individuals. Instead, they rely upon a complex online and real world ecosystem of criminal goods and services for hire, such as the cashing service operated by Mr. Levitskyy. His cashing service was a key component in an organized network of criminal services, which was leveraged to withdraw over $9 million dollars from RBS WorldPay. Outstanding levels of global cooperation among US and international law enforcement culminated in the arrest and sentencing of Mr. Levitskyy, which removed a key criminal service from the cyber criminal underground, thereby reducing the ability for cyber criminals to monetize cyber attacks.”
“This case demonstrates the Secret Service is committed to protecting our nation’s critical financial infrastructure and payment systems,” said Special Agent in Charge, Kenneth Cronin, United States Secret Service, Atlanta Field Office. “These types of cyber criminals use sophisticated hacking techniques to compromise computer systems and then utilize a global network of co-conspirators to withdraw millions of dollars from ATM machines from around the world. Our success in this case and other network intrusion investigations is a result of our close work with our domestic and international law enforcement partners.”
According to U.S. Attorney Horn, the charges and other information presented in court: During November 2008, a team of hackers, including Estonian national Sergei Tšurikov and others, obtained unauthorized access into the computer network of RBS WorldPay, what was then the U.S. payment processing division of the Royal Bank of Scotland Group PLC, located in Atlanta, Georgia. The group used sophisticated hacking techniques to compromise the data encryption that was used by RBS WorldPay to protect customer data on payroll debit cards. Payroll debit cards are used by various companies to pay their employees. By using a payroll debit card, employees are able to withdraw their regular salaries from an ATM.
Once the encryption on the card processing system was compromised, the hacking ring raised the account limits on compromised accounts to amounts exceeding $1,000,000. The hackers then provided a network of cashers with 44 counterfeit payroll debit cards, which were used to withdraw more than $9 million from over 2,100 ATMs in at least 280 cities worldwide, including cities in the United States, Russia, Ukraine, Estonia, Italy, Hong Kong, Japan, and Canada. The $9 million loss occurred within a span of less than 12 hours. In addition, the hacking crew stole files containing 45.5 million pre-paid payroll and gift card numbers.
The hackers then sought to destroy data stored on the card processing network in order to conceal their hacking activity. The cashers were allowed to keep 30 to 50 percent of the stolen funds, but transmitted the bulk of those funds back to Tšurikov and his co-defendants. Upon discovering the unauthorized activity, RBS WorldPay immediately reported the breach, and has substantially assisted in the investigation.
Throughout the duration of the cash out, Tšurikov and another hacker monitored the fraudulent ATM withdrawals in real-time from within the computer systems of RBS WorldPay.
Evgeny Tarasovich Levitskyy, a/k/a Vinchenco, a/k/a Vinch, a/k/a M.U.R.D.E.R.E.R., 31, of Nikolaev, Ukraine, is alleged to have been responsible for cashing out nearly $500,000 associated with a single hacked debit card number. He was sentenced by U.S. District Court Judge Steven C. Jones to 46 months in prison and ordered to pay restitution of $499,518.51.
To date, the U.S. Attorney’s Office for the Northern District of Georgia has charged 14 individuals involved in the hack and cash out, including Russian nationals Viktor Pleshchuk, Evgeniy Anikin, and Roman Seleznev; Estonian nationals Sergei Tsurikov, Igor Grudijev, Ronald Tsoi, Eveilyn Tsoi, and Mikhail Jevgenov; Moldovan national Oleg Covelin; Ukrainian nationals Vladimir Valeyrich Tailar and Evgeny Levitskyy; Nigerian national Ezenwa Chukukere; American national Sonya Martin; and Vladislav Horohorin, who is citizen of Russia, Israel, and Ukraine.
This case was investigated by the Federal Bureau of Investigation and United States Secret Service.
Assistant U.S. Attorney Kamal Ghali prosecuted the case. Assistance was provided by the Justice Department’s Office of International Affairs, the Republic of Slovenia’s Ministry of Interior Criminal Police Directorate (“MNZ”), the Czech Republic’s Policie Ceske Republiky (“PCR”), and the Criminal Division’s Computer Crime and Intellectual Property Section.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga
DOJ Announces Today the Takedown of Alphabay, the Largest Online ‘Dark Market’Read the Press Release
The Justice Department today announced in Washington the seizure of the largest criminal marketplace on the Internet, AlphaBay, which operated for over two years on the dark web and was used to sell deadly illegal drugs, stolen and fraudulent identification documents and access devices, counterfeit goods, malware and other computer hacking tools, firearms, and toxic chemicals throughout the world. The international operation to seize AlphaBay’s infrastructure was led by the United States and involved cooperation and efforts by law enforcement authorities in Thailand, the Netherlands, Lithuania, Canada, the United Kingdom, and France, as well as the European law enforcement agency Europol.
Two matters investigated by the U.S. Attorney’s Office in Atlanta and the FBI-Atlanta Field Division have connections to the international investigation into AlphaBay announced today. First, an investigation conducted in Atlanta has identified an AlphaBay staffer living in the United States. That investigation is ongoing. Additionally, in 2016, the U.S. Attorney’s Office in Atlanta and FBI-Atlanta prosecuted Aaron Glende, a.k.a IcyEagle, who operated as a vendor on AlphaBay. Glende pled guilty to access device fraud and aggravated identity theft and was sentenced to four years and two months’ imprisonment on November 30, 2016.
On July 5, 2017, Alexandre Cazes, aka Alpha02 and Admin, 25, a Canadian citizen residing in Thailand, was arrested by Thai authorities on behalf of the United States for his role as the creator and administrator of AlphaBay. On July 12, Cazes apparently took his own life while in custody in Thailand. Cazes was charged in an indictment (1:17-CR-00144-LJO), filed in the Eastern District of California on June 1, with one count of conspiracy to engage in racketeering, one count of conspiracy to distribute narcotics, six counts of distribution of narcotics, one count of conspiracy to commit identity theft, four counts of unlawful transfer of false identification documents, one count of conspiracy to commit access device fraud, one count of trafficking in device making equipment, and one count of money laundering conspiracy. Law enforcement authorities in the United States worked with numerous foreign partners to freeze and preserve millions of dollars’ worth of cryptocurrencies that were the subject of forfeiture counts in the indictment, and that represent the proceeds of the AlphaBay organization’s illegal activities.
On July 19, the U.S. Attorney’s Office for the Eastern District of California filed a civil forfeiture complaint against Alexandre Cazes and his wife's assets located throughout the world, including in Thailand, Cyprus, Lichtenstein, and Antigua & Barbuda. Cazes and his wife amassed numerous high value assets, including luxury vehicles, residences and a hotel in Thailand. Cazes also possessed millions of dollars in cryptocurrency, which has been seized by the FBI and the Drug Enforcement Administration (DEA).
According to publicly available information on AlphaBay prior to its takedown, one AlphaBay staff member claimed that it serviced over 200,000 users and 40,000 vendors. Around the time of takedown, there were over 250,000 listings for illegal drugs and toxic chemicals on AlphaBay, and over 100,000 listings for stolen and fraudulent identification documents and access devices, counterfeit goods, malware and other computer hacking tools, firearms and fraudulent services. Comparatively, the Silk Road dark web marketplace, which was seized by law enforcement in November 2013, had reportedly approximately 14,000 listings for illicit goods and services at the time of seizure and was the largest dark web marketplace at the time.
“This is likely one of the most important criminal investigations of the year – taking down the largest dark net marketplace in history,” said Attorney General Jeff Sessions. “Make no mistake, the forces of law and justice face a new challenge from the criminals and transnational criminal organizations who think they can commit their crimes with impunity using the dark net. The dark net is not a place to hide. The Department will continue to find, arrest, prosecute, convict, and incarcerate criminals, drug traffickers and their enablers wherever they are. We will use every tool we have to stop criminals from exploiting vulnerable people and sending so many Americans to an early grave. I believe that because of this operation, the American people are safer – safer from the threat of identity fraud and malware, and safer from deadly drugs.”
“Transnational organized crime poses a serious threat to our national and economic security,” said Acting Director Andrew McCabe of the FBI. “Whether they operate in broad daylight or on the dark net, we will never stop working to find and stop these criminal syndicates. We want to thank our international partners and those at the Department of Justice, the DEA and the IRS-CI for their hard work in demonstrating what we can do when we stand together.”
“The so-called anonymity of the dark web is illusory,” said Acting Administrator Chuck Rosenberg of the DEA. “We will find and prosecute drug traffickers who set up shop there, and this case is a great example of our commitment to doing exactly that. More to come.”
“AlphaBay was the world’s largest underground marketplace of the dark net, providing an avenue for criminals to conduct business anonymously and without repercussions,” said Chief Don Fort of IRS-CI. “Working with our law enforcement partners – both domestically and abroad – IRS-CI used its unique financial and cyber expertise to help shine a bright light on the accounts and customers of this shadowy black marketplace, and we intend to continue pursuing these kinds of criminals no matter where they hide.”
“This ranks as one of the most successful coordinated takedowns against cybercrime in recent years,” said Executive Director Rob Wainwright of Europol. “Concerted action by law enforcement authorities in the United States and Europe, with the support of Europol, has delivered a massive blow to the underground criminal economy and sends a clear message that the dark web is not a safe area for criminals. I pay tribute to the excellent work of the United States and European authorities for the imaginative and resourceful way they combined their efforts in this case.”
AlphaBay operated as a hidden service on the “Tor” network, and utilized cryptocurrencies including Bitcoin, Monero and Ethereum in order to hide the locations of its underlying servers and the identities of its administrators, moderators, and users. Based on law enforcement’s investigation of AlphaBay, authorities believe the site was also used to launder hundreds of millions of dollars deriving from illegal transactions on the website.
investigation into AlphaBay revealed that numerous vendors sold fentanyl and heroin, and there have been multiple overdose deaths across the country attributed to purchases on the site.
According to a complaint affidavit filed in the District of South Carolina against Theodore Vitality Khleborod and Ana Milena Barrero, an investigation into an overdose death on February 16, in Portland, Oregon, involving U-47700, a synthetic opioid, revealed that the drugs were purchased on AlphaBay from Khelborod and Barrero. According to another complaint affidavit filed in the Middle District of Florida against Jeremy Achey, an investigation into a fentanyl overdose death in Orange County, Florida, on February 27, revealed that the lethal substance was purchased on AlphaBay from Achey.
Charges contained in an indictment and/or complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This operation to seize the AlphaBay site coincides with efforts by Dutch law enforcement to investigate and take down the Hansa Market, another prominent dark web market. Like AlphaBay, Hansa Market was used to facilitate the sale of illegal drugs, toxic chemicals, malware, counterfeit identification documents, and illegal services. The administrators of Hansa Market, along with its thousands of vendors and users, also attempted to mask their identities to avoid prosecution through the use of Tor and digital currency. Further information on the operation against the Hansa Market can be obtained from Dutch authorities.
The operation to seize AlphaBay’s servers was announced by Attorney General Jeff Sessions; Deputy Attorney General Rod Rosenstein; Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; U.S. Attorney Phillip A. Talbert for the Eastern District of California; Acting Director Andrew G. McCabe of the FBI, Acting Administrator Chuck Rosenberg of the DEA and Europol Executive Director Robert Mark Wainwright.
The case is being investigated by the FBI including FBI Sacramento Field Office and DEA, with substantial assistance from the IRS-CI. U.S. Immigration and Customs Enforcement’s Homeland Security Investigations also assisted in the investigation. The case against Cazes was prosecuted by Assistant U.S. Attorneys Paul A. Hemesath and Grant B. Rabenn of the U.S. Attorney’s Office for the Eastern District of California, and Trial Attorneys Louisa K. Marion and C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section. Substantial assistance was provided by the Department of Justice’s Office of International Affairs and Special Operations Division. Additionally, the following foreign law enforcement agencies provided substantial assistance in the operation to seize AlphaBay’s infrastructure: Royal Thai Police, Dutch National Police, Lithuanian Criminal Police Bureau (LCPB), Royal Canadian Mounted Police, United Kingdom’s National Crime Agency, Europol, and French National Police.
Russian Citizen who Helped Develop the "Citadel" Malware Toolkit is SentencedRead the Press Release
ATLANTA - Mark Vartanyan, also known as “Kolypto,” was sentenced today by United States District Court Judge Mark H. Cohen to serve five years in federal prison, following his guilty plea in connection with his role in developing, improving and maintaining the “Citadel” malware toolkit between 2012 and 2014.
“Citadel caused vast amounts of harm to financial institutions and individuals around the world,” said U.S. Attorney John Horn. “Mark Vartanyan utilized his technical expertise to enable Citadel into becoming one of the most pernicious malware toolkits of its time, and for that, he will serve significant time in federal prison.”
David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office, stated: "Malicious software and botnets are rarely created by a single individual. Cybercrime is an organized team effort involving sophisticated, talented, and tech savvy individuals. Today's sentencing of Mr. Vartanyan, who was engaged in the development, improvement, maintenance and distribution of malware, both removes a key resource from the cyber underworld and serves as a strong deterrent to others who may be contributing to the development of botnets and malware. The threat posed by cyber criminals in the U.S. and abroad is ever increasing. However, the FBI will not cease in its efforts to identify, pursue and defeat cyber criminals regardless of how deep in the cyber underground they reside or where they are located in the real world."
According to United States Attorney Horn, the charges, and other information presented in court: “Citadel” is a malware toolkit designed to infect computer systems and steal financial account credentials and personally identifiable information from victim computer networks. Beginning in or about 2011, Citadel was offered for sale on invite-only, Russian-language internet forums frequented by cybercriminals. Users of Citadel targeted and exploited the computer networks of major financial and government institutions around the world, including several financial institutions in the United States. According to industry estimates, Citadel infected approximately 11 million computers worldwide and is responsible for over $500 million in losses.
Between on or about August 21, 2012 and January 9, 2013, while residing in Ukraine, and again between on or about April 9, 2014 and June 2, 2014, while residing in Norway, Vartanyan engaged in the development, improvement, maintenance and distribution of Citadel. During these periods, Vartanyan uploaded numerous electronic files that consisted of Citadel malware, components, updates and patches, as well as customer information, all with the intent of improving Citadel’s illicit functionality.
Vartanyan, a Russian national, was extradited from Norway to face charges in the United States in December 2016. He pled guilty to computer fraud on March 20, 2017.
This case was investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Steven D. Grimberg prosecuted the case. The Justice Department’s Office of International Affairs also provided assistance with this case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.